Gold is edging higher targeting at the $1,800 psychological level after making another higher high on the H4 chart. The yellow metal is trading at $1787 level and it seems strong enough to jump higher in the short term.
Today’s US data could bring high volatility on gold, some poor figures will boost the price which it will reach fresh new highs. Gold is strongly bullish and is expected to climb higher as the global risk remains high. A USD’s potential drop will lift the gold price.
Gold has confirmed a further increase after it has registered only a false breakdown with a huge separation below the median line (ml) of the orange ascending pitchfork. Now, the gold price has retested the inside sliding line (sl) and has crossed above the R1 ($1,785) static resistance.
The next upside target is seen at the $1,800 level, while the second is represented by the upper median line (uml) of the orange ascending pitchfork. Gold is bullish as long as it stays above the median line (ml).
- GOLD Trading Tips
Gold will resume its bullish momentum if it closes and stabilizes above the broken R1 ($1,785) level, you can go long as well from above this level with target at the upper median line (uml).
The price could be attracted by the upper median line (uml) after the failure to close on the median line (ml) in the last attempts. Gold will register an aggressive growth if the price makes a valid breakout above the upper median line (uml). The R3 ($1,822) could be used as a target as well.
A further increase will be invalidated only if the price makes a valid breakdown below the median line (ml) and below the PP ($1,764).
The material has been provided by InstaForex Company – www.instaforex.com