XAU/USD forms minor symmetrical triangle
XAU/USD forms minor symmetrical triangle
The second half of previous trading session the exchange rate spent in horizontal movement. A release of better than expected US consumer sentiment data pushed it to the bottom, while another launch of ICBM by North Korea gave a reason to continue the surge. Technically, the southern side was protected by the 55- and 100-hour SMAs that are lying along the lower support line of the rising wedge formation, while the northern side contained the weekly and monthly R1.
Although the pair has formed a minor symmetrical triangle, the pair is still expected to make a breakout to top. This assumption is based on market sentiment, which is 52% bullish as well as dominance of the larger pattern. However, there is a need to notice that release of the US Prelim GDP can lead to short-term strengthening of the buck.
The second half of previous trading session the exchange rate spent in horizontal movement. A release of better than expected US consumer sentiment data pushed it to the bottom, while another launch of ICBM by North Korea gave a reason to continue the surge. Technically, the southern side was protected by the 55- and 100-hour SMAs that are lying along the lower support line of the rising wedge formation, while the northern side contained the weekly and monthly R1.
Although the pair has formed a minor symmetrical triangle, the pair is still expected to make a breakout to top. This assumption is based on market sentiment, which is 52% bullish as well as dominance of the larger pattern. However, there is a need to notice that release of the US Prelim GDP can lead to short-term strengthening of the buck.
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XAU/USD breaks from junior channel up
Formation of a minor pennant pattern, indeed, pushed the further downwards. However, the bottom edge of a junior ascending channel was expected to withhold the pressure. The fact that the buck continued to appreciate against the gold in based not only on release of satisfying macroeconomic data yesterday. Most probably the maximum that the pair has reached on November 27 was interpreted as a rebound from the upper trend-line of a larger descending channel, while the subsequent massive plunge simultaneously signified a breakout from the junior rising wedge formation.
If this view dominates the market, then the bearish pressure is expected to continue until the pair reaches the lower support line of a dominant long-term ascending channel near 1,271.00. As for today, unless some event causes high volatility the pair is likely to fluctuate between the 1,276.50 and 1,271.50 levels.
Formation of a minor pennant pattern, indeed, pushed the further downwards. However, the bottom edge of a junior ascending channel was expected to withhold the pressure. The fact that the buck continued to appreciate against the gold in based not only on release of satisfying macroeconomic data yesterday. Most probably the maximum that the pair has reached on November 27 was interpreted as a rebound from the upper trend-line of a larger descending channel, while the subsequent massive plunge simultaneously signified a breakout from the junior rising wedge formation.
If this view dominates the market, then the bearish pressure is expected to continue until the pair reaches the lower support line of a dominant long-term ascending channel near 1,271.00. As for today, unless some event causes high volatility the pair is likely to fluctuate between the 1,276.50 and 1,271.50 levels.
An estimated growth of the US GDP expectedly strengthened the buck and reduced demand for the safe haven metal even though the plunge was not expected to be so sharp, as southern side was reliably protected by two moving averages that were moving along the trend-line of a rising wedge formation. As the aggregate market sentiment remains 60% bullish, in medium perspective the pair is expected to continue rising in the one-month long ascending channel.
With respect to the current trading session, formation of a minor pennant pattern suggests that the rate is likely to continue moving downwards towards the bottom boundary of the above channel. Nevertheless, a rebound might happen earlier if the pair fails to bypass support zone located between the 1,282.00-1,283.00 levels.