23.10.202011:55 Forex Analysis & Reviews: GOLD Accumulates Bullish Energy

XAU/USD has declined again in the short term as the USDX has registered a temporary rebound. The price is still located in the buyer's territory, so further growth is favored. More bulls will step into the game if the rate will jump above the $1,931 former high.

Today, the manufacturing and services data should bring life to the gold price as well. I believe that the yellow metal will resume its upwards movement if the USDX continues to drop.

Exchange Rates 23.10.2020 analysis

Technically, the price of gold is expected to grow after escaping from an ascending triangle. The rate has tested and retested the $1,900 psychological level confirming it a strong support area.

Though, only a valid breakout above the median line (ml) of the ascending pitchfork will validate the swing higher. Unfortunately, the upside is still uncertain, the median line (ml) represents strong dynamic resistance. We may have an upside breakout if the rate continues to stay near the median line (ml).

  • GOLD Trading Tips

Today, we'll talk about a long trading opportunity. A bullish closure above the $1,931 former high will suggest buying as the price of gold will resume its upwards movement. The $2,000 could be used as an upside target, only a valid breakout above it will signal further growth.

You should be careful because a drop under the $1,894 immediate low indicates a drop towards the $1,862 in the short term.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Ralph Shedler,
Analytical expert
InstaForex Group © 2007-2020
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