After touching the ascending trend line from the January 27 low of 1180.51 to the March 10 low of 1194.94 on its daily chart, XAUUSD rebounded strongly from 1214.17 and the pair is now facing 1295.44 resistance.

Will the bullish movement continue?

Let’s look into its 4-hour chart. There is a bullish trend line from the May 9 low of 1214.17 to the June 2 low of 1258.92 with support at around 1266.00 on its 4-hour chart, indicating that the pair remains in a bullish structure. As long as the XAUUSD pair is above the trend line, the uptrend from 1214.17 could be expected to continue. However, the pair is now under pressure by the resistance of the April 17 high of 1295.44, so sideways movement in a range between 1285.00 and 1295.44 would likely be seen in a couple of days.

On the upside

A break above 1295.44 resistance will confirm the long term uptrend from the December 2016 low of 1122.56 has resumed. This could trigger another rise to the next resistance level at the November 2016 high of 1337.28. If this level gives way, the pair will find resistance at the July 2016 high of 1375.11.

On the downside

Key support for the short term uptrend from 1214.17 is located at the ascending trend line on its 4-hour chart, only a clear break below the trend line support will indicate that the uptrend is complete, then another fall to test the support of the rising trend line on the daily chart could be seen.

Technical levels

Support levels: 1285.00 (near term support), 1266.00 (trend line on 4-hour chart), 1.258.92 (June 2 low), 1224 (trend line on daily chart).

Resistance levels: 1295.44 (April 17 high), 1337.28 (November 2016 high), 1375.11 (July 2016 high).

This article is written by Franco Shao, a senior analyst at ForexCycle.

© 2017 Copyright Franco Shao - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.