Morning Market Updates – XAU/USD

Gold has extended its recovery leaving risk factor higher in the upcoming days. On the downside, support comes in at the 1271.68 level where a break will turn attention to the 1267.16 level. A further down through here will open the door to move lower towards the new lows. The pair below here could trigger further downside pressure targeting new low level. Conversely, the pair’s resistance resides at the 1276.59 level where a break will aim at the 1281.41 level and turning above will expose the 1285.13 level. The pair’s four hour oscillator is bullish and points higher suggesting further strength but has been in the 60.0 zone. Altogether, Gold looks to recover further higher.

Gold has further improved as a move above the resistance at the 1276.59 level. The precious metal is now trading above the 1276.59 level. The pair’s four hourly chart support can be found at this levels and it is expected to show further increase.

In the long term, the pair’s trend is rather positive. A further upside move is very likely to occur. The pair’s support is located at the 1276.59 level which has been broken and stays above this level until now. The bulls would regain control on a decisive move back above the pivot band at the 1276.59 level. However, this is a significant medium term barrier which would complete a new pattern. The pair’s resistance also coincides with the previous resistance now turned support and capped the upside aside from a brief intraday spike to the 1276.59 level at the beginning of the day. The pair’s recent candle was much in favor for the bulls with a consolidation at a high of these levels as the momentum indicators specifically the pair’s stochastic also approach key areas where they have been holding above the 60.0 levels. The four-hourly chart shows a decent uptrend which has been broken now with the resistance of the 1276.59 level now increasingly a key in the near term. The four-hourly oscillators are consistently rising back above the 60 level would reflect a stronger bullish trend, but the support is key. The pair trading below the 1276.59 support level puts 1267.16 back in sight.

Gold price continues to rise to begin testing the resistance line that appears and the price finds support with the EMA50 that forms a positive pressure against the intraday trading. This confirms the continuation of the bullish bias in the upcoming sessions.

In general, we will continue to suggest the bullish trend on the intraday and short term basis as long as the 1276.59 level remains intact, noting that breaching at the 1276.59 level will reinforce the expectations of achieving our positive targets that start at the 1281.41 and extend to 1285.13 levels.

The pair’s expected trading range for today is between the 1271.68 support and 1285.13 resistance levels.

Expected trend for today: Bullish
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