Home Forex XAU/USD is eager to break the bull flag amid an impending bullish transition

XAU/USD is eager to break the bull flag amid an impending bullish transition

by SuperiorInvest

Gold closed in the green for the first time in five days on Tuesday. As FXStreet’s Dhwani Mehta notes, XAU/USD is going to confirm a bull flag.

Favorable daily technical setup

“The wait for confirmation of the bullish flag seems almost over as the price of gold is holding firm above the descending trendline resistance at $1,737. A daily close above the latter is crucial to confirm a bullish continuation and revive the uptrend towards the three-month highs of $1,787. Before that, bulls will face immediate obstacles at the psychological level of $1,750 and this week’s high near $1,770.”

“The 14-day Relative Strength Index (RSI) is holding tighter above the midline, supporting bullish potential. The rising 21-day moving average (DMA) adds credence to the likely upside and is on the verge of cutting the slightly bearish 100DMA from below, showing an impending bullish cross.”

“On the downside, a strong cushion is seen at Monday’s low of $1,733, below which the descending trendline support at $1,712 will be tested. A 100DMA creeps in at this level. Further south, the bullish 21DMA at $1708 will come into play, offering the last line of defense for the gold price.”

See – Gold Price Forecast: XAU/USD to resume downtrend and dip below $1,700 – ANZ

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