XAUUSD extended its bullish movement from 1204.77 to as high as 1339.69, breaking above the November 2016 high of 1337.28 resistance. Further rise is still possible in a couple of weeks.

On the upside, the gold price stays above a bullish trend line from 1204.77 to 1275.64 now at around 1290. As long as the price is above the trend line, the bullish movement could be expected to continue and next target would be at the July 2016 high of 1375.11.

Near term support is located at the rising trend line from 1275.64 to 1297.94 on the 4-hour chart, now at 1320. A clear break below this trend line support could take price back towards the trend line on the daily chart.

The bullish trend line on the daily chart could be treated as the key support for the uptrend from 1204.77. A clear break below this trend line could signal completion of the uptrend, then the following correction pullback could bring price back to 1275.64, or even 1251.44.

Technical levels

Support levels: 1320 (the rising trend line on the 4-hour chart), 1290 (the bullish trend line on the daily chart), 1275.64 (the August 25 low), 1251.44 (the August 8 low).

Resistance levels: 1337.28 (the November 2016 high), 1375.11 (the July 2016 high).

This article is written by Franco Shao, a senior analyst at ForexCycle.

© 2017 Copyright Franco Shao - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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