After a $194 bullish run and currently trading at 6-month highs the temptation to keep buying, must be present. Whilst I believe the run does still have legs in it, going into this weekend my bias is for a minor retracement before a trend continuation.
The chart above is the ETF for Gold which allows us to use the volume as a proxy for buying/selling pressure on XAU/USD. We continue to trade to new highs and whilst volume is still above average, we reached a new high yesterday on lower volume. In itself this is no major concern (unlike the Euro Chart posted today) but as we have failed to break above resistance it does raise the odds of a minor pullback at least.
XAU/USD Mini Daily" title="XAU/USD Mini Daily" height="242" width="474">
Yesterday's candle was a Spinning Top Doji on lower volume and whilst today’s trading did see an intraday spike above yesterday's high we are now trading back below this resistance level. We are relatively light on 'red news' tonight as we only have US PPI and consumer sentiment. If we are likely to see any substantial moves across the markets it is more likely to be Ukraine related, however my current bias is for a retracement towards 1362.40.
In the event we break above 1375 we have the upper channel which may act as resistance as we creep up the channel. However going into the weekend expect positions to be closed so stay nimble.
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