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XAU/USD 4H Chart 12:13PM EDT 8/10/2012
Gold has been trading more or less sideways since pushing above a declining trendline seen in the daily chart, which was holding price in a triangle. Now, above the triangle, the market appears to be channeling upwards. The 4H chart shows that the 8/10 session broke above the August high, which was near 1618. We still have the 1629 resistance to test before targeting the 1650 handle. So far however, the breakout looks a bit suspect, especially if today’s close (8/10), also the week’s close, is back below 1618.
The 1650 handle is seen in the daily chart near the 200-day SMA. This starts a zone of key resistance that include a projected channel resistance and a declining trendline that goes back to the record high set in Sept. 2011.
A break below 1620 however keeps things unclear and sideways. A break below the 1603 support pivot and then the psychological 1600 handle might bring about some bearish outlook in the very short-term, but only a break below the rising pattern in the daily should introduce the bearish continuation scenario.
XAU/USD Daily Chart 12:16PM EDT 8/10/2012
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
