A breakout from a falling wedge in gold shows that bullish movement may take place in the short term.
Once above resistance, momentum could cause a 1,000-pip move in the currency pair.
The current support level is $3,295.37 and the test of the next resistance is expected near $3,359.57.
It looks like gold is regaining strength because the XAU/USD pair has broken out of a falling wedge pattern on the hourly chart, hinting at an upcoming rise. Short-term signals from market indicators show an uptrend and the current price behavior lines up with the classic reversal seen in this chart.
Falling Wedge Breakout Points to Upside Continuation
The falling wedge pattern that typically registers as a bullish reversal indication has now been broken to the upside, indicating that pressure from bears may be diminishing. The pattern started in mid-May and persisted in the latter part of the month.
https://twitter.com/CryptoFaibik/status/1929398450941997546
Price action recently broke above the upper trendline, indicating potential change in attitude in the market. Dealers witnessing this breakout are eyeing a move of around 1,000 pips from the level of the breakout, based on chart estimates.
XAU/USD Price and Key Levels
At the time of reporting, the spot price of gold (XAU/USD) was trading at approximately $3,358.26, reflecting a 1.9% daily gain. On a relative value basis, gold is priced at 0.03227 BTC and 1.3524 ETH, showing increases of 1.9% and 2.6%, respectively. Support is now observed at $3,295.37, while immediate resistance is located at $3,359.57 — a level that the market appears to be testing in real time.
Technical Outlook Suggests Momentum Shift
A climb above the old resistance level after the wedge is seen as a possible short-term change in trend, given that price maintains its position above that level. While there is upward pressure, analysts are on the lookout to see if gold can stay at these prices prior to deciding about the next possible move. If traders follow through and buy above resistance, the predicted pip target may be validated by the move.
Whereas macroeconomic triggers are not accorded explicit mention in the current setup, price structure alone points towards gold being in short-term bullish mode. Investors and experts will wait for confirmation of this breakout in terms of follow-through volume and higher closes in subsequent sessions. A measured move in the breakout of the falling wedge could suggest further gains ahead.
The post Gold Ignites Bullish Surge: Chart Breakout Hints at 1,000-Pip Rally Ahead appears on Coin Futura. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
