Send me real-time posts from this site at my email
Fan Yang

XAU/USD (Gold) - Breakout and Fibonacci Retracement Target

Gold priced in the US Dollar (XAU/USD) has been consolidating since November, and is starting the New Year with a bullish breakout from this consolidation range and therefore creating a price bottom.

XAU/USD 4H Chart 1/7

(click to enlarge)

If we project the bullish swing using the width of the broken consolidation, we would target the 1133-1136 area, which also involves the 61.8% Fibonacci Retracement level. 

Now, let's say there is a pullback, which shouldn't be a surprise with the RSI showing overbought condition. If this pullback stalls around 1080 and rallies, we can confirm respect of the price bottom and have a stronger expectation of the noted bullish outlook towards 1133-1136.

On the other hand, a break below 1070 should signal a failed bullish correction, and open up the 1050 support area with a bearish continuation scenario that has even further downside risk. 

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue