Gold (XAU/USD) started out a fresh week on a cautious footing, despite the positive close last week around $1810 levels. Technical setup favors the bulls in the near-term as the yellow metal has confirmed a bull flag pattern, FXStreet’s Dhwani Mehta briefs.
Key quotes
“A bull flag pattern is spotted on the hourly chart, as gold has closed above the falling trendline resistance at $1809.98 on an hourly basis.”
“The bullish breakout calls for a pattern target of $1827 in the coming days. In the meantime, the previous week of $1815.10 will challenge the bulls’ commitment. Acceptance above the latter, the multi-year high at $1818.17 will be put to test, in a bid to test the $1820 round figure.”
“A cluster of supports is aligned around $1805, which is the level to beat for the bears in the near-term. That is the confluence of the 50, 100, 200-hourly Simple Moving Averages and falling trend line support.”
“Should the bulls fail to defend the $1805 support, the next downside target is placed at the $1800 psychological level.”
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