Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.
Following up on my last article on Gold, we’ve seen the 1605.00 support I referred to hold, followed by a rally that spiked through the major resistance level at 1641. There was a brief pullback, and currently, an attempt is being made to break above. The price action, at this major resistance seems to be suggesting a strong potential for a stretch higher into the down-sloping resistance line which, together with the main up trendline, creates a triangular formation. The triangle resistance line should be tested at 1680.00, as long as 1640.00 continues to act as support, and the scenario plays out.
1680.00s then will be critical to further direction for this instrument, as a breach of the resistance line would be likely to result in further upside. I will be looking for reasons to short at the level resistance proves to be holding. To the downside, 1640.00 will have turned into mid-range support, followed by the up trendline and triangle support below at 1560.00s. Until a break out of the triangle is confirmed, it has to be considered ranging, and would be better traded as such.
If you are interested in following this and other pairs with me, it is a good idea to follow me on twitter, since I am able to give quick updates there, and you will be able to get them instantly.
Thanks for having taken the time to read the article, and I would love to hear your own points of view regarding Gold.
Trade safely, and have a successful week!
Other useful blogs:
The GeekKnows– Daily Commentary on Eurusd
Winner’s Edge Trading, as seen on: