It’s a big day in gold (XAU/USD) price action. After stalling under 1290 at a falling trendline, gold price surged, breaking above the falling channel resistance line and breaking above the key level of 1300.
(gold daily chart, 6/19)
The break above 1300, reverses a bearish outlook because it not only broke above a falling trendline, but also the central pivot of a previous consolidation area. In the daily chart, today’s price action also cleared above the 200-, 100-, and 50-day simple moving averages. The RSI is pushing above 70, which reflects the start of bullish momentum.
In the daily chart you can see that the next resistance is around 1330-1331. If there is a pullback, watch the 1280-1300 area for support. If price can hold above this area, and is able to push above 1331, the 2014-high at 1388 will be in sight.
(gold 4h chart, 6/19)
The 4H chart shows that xau/usd is building bullish momentum in this time-frame as the RSI tagged 80, then stayed above 40 on a dip, and pushed above 80 again. If the RSI dips back to 40 again on a pullback, get ready for the buy on the dip scenario, especially if price also settles in the 1280-1300 area.
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