Gold Bugs Set Their Sights On The March Highs

Blue avatar for FOREX.com guest contributors
By :  ,  Financial Analyst

There’s a decent zone of support for gold around $1275-$1280 which has fended off any further downside. Although, with the zone consisting of structural lows from January and March, a 38.2% Fibonacci ratio and the 200-day eMA, it was never going to be an easy nut to crack initially.

Bullish momentum has picked up from the lows of its range since printing a series of bullish pinbars. The hourly chart shows a decent trend structure is developing, and it pullback into the averages preceded a breakout from an apparent bullish flag. We’ll assume a continuation of this trend with a break to a new cycle high (above $1306).

Interestingly, if prices break above $1324.55 a double bottom could be confirmed which, if successful projects an approximate target around $1370. For now, we’ll focus on the bullish momentum on lower timeframes within its range.



Related tags: Gold

Open an account in minutes

Experience award-winning platforms with fast and secure execution.

Live Virtual Trading Events

Our interactive live virtual events, led by our industry experts, come highly recommended and can help provide your trading with the edge it needs.
Economic Calendar