Gold could reach to 1800 level if this pair can break the resistance zone at 1738. A daily close above 1738 will certainly open the door to challenge the 1800 level. As we have written in our last article that Gold needs price correction to move further and it’s done exactly what you point out in our last article. If you missed that please read it here.
Now, what is next on Gold? We have seen the pullback. Gold was able to close above 1700 level which is a good sign for the bull. If we look at the Gold H4 timeframe we have identified the next support is seen at 1690 and 1670 respectively. As long as 1690 played as support and gold can break the resistance in 1710, we might see gold will challenge the next resistance in 1738. Also if we notice, Gold has created double bottom at 1670 and found strong support.
If we look at the D1 timeframe on the Gold chart, we will see the price is ranging from 1670 to 1738. So it’s better to wait and see to get the perfect idea of Gold. Any breaks below 1670 will open the door to watch out at 1640 and even 1570 level.
On the other hand, if Gold able to break the resistance 1710 and 1738, we might see gold is challenging the 1800 level for the coming weeks. Also, don’t forget US-China new trade war could create high volatility on Gold.
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This trading analysis is only for getting an idea about the current market situation. This is not a signal. These can be used for education purposes only.