Just when it seemed that gold already broke below a long-term consolidation pattern, a fresh triangle formation is brewing on its 4-hour time frame.
Check out these potential inflection points!
Gold (XAU/USD) 4-hour Forex Chart by TradingView
This precious metal still seems intent on forming higher lows, as price just bounced off the $3,320 support area while risk aversion has made its way back in the markets so far this week.
A combination of geopolitical jitters and overall anxiety ahead of Fed head Powell’s Jackson Hole testimony appear to be keeping the safe-haven asset supported, along with a bit of dollar weakness.
Can gold sustain its bounce to the triangle top?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on gold and the U.S. dollar , then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Price is closing in on the middle of the triangle, which happens to be right around the pivot point level ($3,355.64) and the dynamic inflection points at the moving averages that could keep gains in check.
If resistance holds, look out for a drop back to the triangle support or a move lower to bearish targets at S1 ($3,309.90) then S2 ($3,284.10).
On the other hand, an extended gold rally could take it up to the triangle resistance at R1 ($3,381.44) or for a break higher to the bullish targets at R2 ($3,427.19) then R3 ($3,452.99) near the June highs.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
