Okay, so two possible scenarios for XAUUSD here:
1. Price with strong demand acceleration breaks out of the triangle formation and starts to head out towards the 2050 price level zone. The long-term uptrend is intact and the bulls prosper.
2. Price fails at the resistance level circa 23.6 Fibo and breaks the main trend support line. Bulls will give up a fight there and the price will try to return inside the trend, but on the top side now this will be a resistance. Fail here as well may push the price down for a more deeper correction towards the 50 Fibo level.
We are witnessing a typical Bull break in Gold after a continuous uptrend as we're now "resting". Factors are still in play for strong gold demand - overall Covid - 19 situation and most importantly - bond prices. I am leaning towards a long position, but will wait out on the breakout to execute the first scenario.
1. Price with strong demand acceleration breaks out of the triangle formation and starts to head out towards the 2050 price level zone. The long-term uptrend is intact and the bulls prosper.
2. Price fails at the resistance level circa 23.6 Fibo and breaks the main trend support line. Bulls will give up a fight there and the price will try to return inside the trend, but on the top side now this will be a resistance. Fail here as well may push the price down for a more deeper correction towards the 50 Fibo level.
We are witnessing a typical Bull break in Gold after a continuous uptrend as we're now "resting". Factors are still in play for strong gold demand - overall Covid - 19 situation and most importantly - bond prices. I am leaning towards a long position, but will wait out on the breakout to execute the first scenario.