FOREX Chart Of The Day: Gold Retests Range Highs

The price of Gold has retested the breakout range highs but is this time to look for long opportunities or is it time to wait?

Watch the video to learn more…

XAU/USD Daily Time Frame

The daily time frame shows that the price had retested the previous swing highs and rejected complicating the trend trading situation.

If we expected to see the trend continue we would have liked to have seen a breakout of the high and a higher high form.

This hasn’t happened but the price has retested the breakout range highs which could offer a long opportunity.

Gold Tests Range Highs

Looking at the trend on the 4hr time frame, we can see that the market is making lower lows and lower highs showing a daily retracement phase.

If we are to see this market move into a daily impulse phase we need to look for reversal patterns on the 4hr timeframe.

An inverse head and shoulders pattern or a double bottom pattern will be ideal for long opportunities and target the previous swing highs.

Gold Risks

Alternatively, if the price breaks back into the range we could see the price continue to move back towards the range lows.

If this happens we would need to wait for the market to forms a strong bullish rejection before looking for other long opportunities.

This should occur in line with the USD and the USD index could continue to pullback before going long.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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