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$1750 remains a critical level for the bulls in the short-term as the XAU/USD pair bounced off the 200 and 55-day moving averages to push higher, Rajan Dhall from FXStreet reports.

Key quotes

“There has been a bullish cross as the 55 Exponential Moving Average crossed the 200 Simple Moving Average to the upside.” 

“The MACD has had a bullish cross of the signal lines. The histogram, however, is still under the midpoint which indicates this could just be a retracement.” 

“The main feature in the chart is the Fibonacci retracement. Although most of the major Fibs have been taken out, the key 76.4% remains intact. The 76.4% is often used by Elliott Wave analysts for the 1-2 wave count and until that level is broken there will always be the question mark of this just being a small retracement.”

“Longer-term, the gold chart is still a very bullish one but it could be a good confirmation signal if $1750 per troy ounce was broken.”