XAU/USD rose to the highest levels since 2012. The advance has become stretched and the price may try to correct down.
XAU/USD: a short-term trade
SELL 1,460; TP 1,451; SL 1,463
Last week XAU/USD recovered 38.2% of the November decline. However, the advance of gold was limited by the declining 50-period MA on the H4: the price made two attempts to overcome this area and all of them failed. The price formed a lower high and the price action strongly resembles a “Head and Shoulders” pattern. The decline below $1,460 will open the way down to the $1,450 area, according to the size of the pattern. An advance above $1,468 is needed for buyers to return to power.
After forming a diamond-like top below 1,700, XAU/USD went consolidating. Pay attention to the support and resistance levels!
Currently, the precious metal trades in the zone of 7-year highs. How far away is the all-time high?
Risk-on pushed stocks and riskier currencies upward.
It’s simply the question of time before gold price gets to the higher levels…
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