In the beginning of European session, the Gold soared sharply towards $1,347. But unfortunately, we weren’t able to take this position due to our existing sell position Gold. But you know the good thing is, we closed our sell position manually as soon as the technical side signaled the bullish reversal. Though we closed position with a minor loss, it still saved us a good number of pips that we should have lost in case of stop loss.  Here’s what to expect next…

GOLD / XAUUSD – Bullish Dominates On Weaker Dollar

Taking a quick look at the 2 – Hour chart, you can see the Gold just broke out of the bearish channel which was providing some solid hurdles up there. That’s another reason why I was holding my sell position. The weaker dollar is forcing investors to switch their investments to the Gold.

Gold – 120 – Min Chart

For the moment, the Gold is heading north to target $1,349 but it’s going to be a challenging resistance level for the Gold. In case Gold breaks above $1,349, it will fly for $1,356. Check the support levels below.

Support     Resistance 

1334.26    1345.36

1327.03    1349.23

1323.16    1356.46

Key Trading Level:    1338.13

Gold // XAUUSD – Trading Plan

Since the Gold is already below $1,349, I will be looking for a sell signal here. But honestly, the Gold doesn’t seem to halt it’s bullish momentum here. We may see it going towards $1,356. If this happens, I will sell it there below $1,356.