Market Update: Has Gold’s Price Started a New Leg Higher?
Hi traders, today we’re looking at Gold’s daily chart as the price looks to be starting a new extension higher.
Looking at Gold’s chart below, we are watching the latest HL which formed yesterday. This point has marked a new uptrend after buyers broke the medium downtrend line after holding a double bottom pattern.
Double bottom patterns can be trend reversal patterns. At the moment price is doing the right thing by breaking the longer-term downtrend.
We see some resistance at 1756.50, where buyers will need to clear to show they hold momentum. We also want to see buyers hold the last low (HL). If sellers close below this point we want to see more evidence from buyers, or it could be a risk of a new push lower. It’s really up to buyers now to show conviction with a break of resistance and push back into the 1760s.
USD news to watch
As we already mentioned earlier this week Fed Chair Powell speaks on Thursday. The US Retail Sales Data announcement is also expected.