Hello traders! Perhaps Gold is one of those instruments that everyone is looking at during these volatile times. Gold has also been very volatile although it remains above the 200 Exponential Moving Average on a daily timeframe. This suggests the validity of an uptrend and while the price is above the EMA, we can expect yet another wave to the upside.
On the 4H chart, the price has reached the lower trendline of the extended ascending channel. Price did reject it clearly, followed by a spike below. Nevertheless, channel support remains valid and the price already made a strong move up.
Perhaps the price will continue to move higher and key resistance is seen at 88.6% Fibonacci retracement level, which is $1670 area. At the same time, after a strong green candle, there might be short consolidation or small correction to the downside. This might be the moment when traders will strongly consider buying XAU/USD.
Bias: Strongly bullish while above $1450
Potential Support Zone: $1450 – 1500
Potential Targets: $1670
Have a profitable trading!