The daily chart of the gold price against the US dollar reaches a critical level in setting the future scenario.
The XAU/USD pair has moved higher for four days after visiting support at the $1784 price level. At the moment, the price reaches the 200-day simple moving average and the downtrend line, which limits the technical figure (A) above.
A breakout to the upside has a first target at the $1860 price level, then a second one at $1909 and the third one at $1952.
If the technical hurdle holds, the first downside target is at the $1800 price level, then the second at $1784 and the third at $1748.
The MACD on the daily chart shows the potential for a bullish crossover of the moving averages. However, the proximity of the indicator's neutral level augurs that such a path will not be easy.
The XAU/USD pair has moved higher for four days after visiting support at the $1784 price level. At the moment, the price reaches the 200-day simple moving average and the downtrend line, which limits the technical figure (A) above.
A breakout to the upside has a first target at the $1860 price level, then a second one at $1909 and the third one at $1952.
If the technical hurdle holds, the first downside target is at the $1800 price level, then the second at $1784 and the third at $1748.
The MACD on the daily chart shows the potential for a bullish crossover of the moving averages. However, the proximity of the indicator's neutral level augurs that such a path will not be easy.