Dear traders,
Gold (XAU/USD) is building a bullish bounce around $1760-$1800. The double bottom chart pattern (blue box) could fuel the reversal.
This article reviews the potential for Gold to move up. We also analyse the targets in the short-term and long-term.
The XAU/USD uptrend saw price breaking above the round $2,000 level in the 1st half of 2020. But the 2nd half of 2020 has been a lot quieter. Letβs review why.
On the daily chart, the correction phase becomes better visible. As we can see, the bearish price action is slow, choppy, and corrective. This is typical for a wave 4 (purple).
A bullish bounce and breakout is expected. But the main target in the short-term is the previous high at first. A bearish bounce at the previous high could confirm a wave B (blue).
Eventually, a break of the high should send this commodity higher though. The main targets are $2,250 and $2,500.
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter.
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