XAU/USD to face strong resistance at the $1875-76 area [Video]

Gold gets congested near tough resistance after positive gap [Video]

Gold opened Monday’s session with a small positive gap, which settled the price slightly above its constraining simple moving averages (SMAs) and near the tough topline of the descending channel at 1,864. A decisive close above that resistance trendline is required to keep the bulls in play. However, the 38.2% Fibonacci retracement of the August downfall at 1,883 and the surface of the Ichimoku cloud are placed in the same location, increasing the difficulty of such a violation. Read more…

 

Gold Price Analysis: XAU/USD to face strong resistance at the $1875-76 area

Gold opened with a bullish gap on the first day of a new trading week, albeit lacked any strong follow-through and remained below three-week tops touched on Friday. XAU/USD bulls now await ascending triangle breakout, FXStreet’s Haresh Menghani reports.

“Market participants now look forward to the US ISM Manufacturing PMI for some trading impetus. The key focus, however, will remain on the broader market risk sentiment and the US stimulus headlines.” “The recent recovery from the vicinity of the $1800 mark has been along upward-sloping trend-line support. This, along with a strong horizontal resistance near the $1875-76 region, constitutes the formation of an ascending triangle on hourly charts. Ascending triangles have a bullish bias and are typically seen as a continuation pattern, though sometimes mark a reversal.” Read more…

Gold ranging: Bullish breakout still in play

Gold opened higher this Sunday  and jumped almost 1% instantly. We are still bullish in Gold and will be above the very important 1830 technical level. 

The biggest level to the upside is the previous weekly highs (also the week before highs) at around the 1875. Should price break this level we could see a momentum run towards the 1900 level and further to test the 1950. Read more…

Chart