Among all the most popular instruments that you have on your platform, the most interesting situation can be seen on Gold. This instrument was mentioned here many times in the past few days and our analysis were spot on! In our previous pieces about this commodity we said multiple times that gold is in the best place for a reversal ever and here we are, the reversal is happening.
Today, buyers met first important resistance – 23,6 % Fibonacci. On Friday, the price broke the midterm down trendline (orange). So in the same time, we have both: a positive and a negative factor. In my opinion, price being below the 23,6% Fibo is just a pause. In the next few days, most probably, we will witness a breakout and an upswing aiming the next important target – 38,2% Fibonacci.
Second part of the European session on Monday brings us a weakness of the USD, which vastly helps the Gold to keep the buying pressure on the Fibonacci resistance. All seems ready for a decisive attack. Positive short-term sentiment towards XAU/USD, will be denied, once we will see a strong bounce from the current levels, which as for now, is less likely to happen.
