XAUUSD: Critical crossroad. Levels to consider.

Early this week Gold rebounded on the 1,266.70 level which on 1W terms is a Higher Low on the long term bullish channel (RSI = 51.902, ADX = 38.770, MACD = 8.470, Highs/Lows = -3.7236) that started on the August 2018 low. If this level gets crossed then this long term bullish trend is invalidated and the price can potentially test 1,200.

On the other hand 1D is a standard Channel Down (RSI = 48.393, MACD = -5.880, Highs/Lows = 0.0000) with 1,296.35 its potential Lower High. Breaking above this level shouldn't be enough to sustain a bullish reversal on 1D. The price needs to break above the previous Lower High (1,310.85) to confirm it.

Those are the break out levels so trade accordingly. At the moment we favor the longer term pattern, which is bullish after the rebound on the 1,266.70 1W Higher Low. Our long term target is in the region of 1,340 - 1,350.






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