Gold Breaks Out of Asymmetric Triangle Pattern – Can we go long today?

Posted Thursday, July 26, 2018 by
Arslan Butt • 1 min read

Gold continues to trade in line with our forecast Gold Peeking out of Asymmetric Triangle Pattern – Technical Updates. Today, the investors will be waiting for the ECB rate decision and core durable goods orders to trade the market. Are you up for the next trade?

Gold – XAU/USD – Fundamental Outlook

Despite the violation of asymmetric triangle pattern, gold prices remained steady as the U.S. President Donald Trump and European Commission President Jean-Claude Juncker confirmed to work towards reducing trade barriers, relaxing immediate concerns about global trade tensions.

Are you wondering how this impacts gold? Let me help you with it. The meeting between Trump and Juncker was hiking uncertainties. The failure of this meeting was supposed to drive safe-haven demand in the market, but fortunately, things went in the favor of both economies.

Trump announced, “We agreed today, first of all, to work together toward zero tariffs, zero non-tariff barriers and zero subsidies on non-auto industrial goods.”

Gold – XAU/USD – Technical Outlook

The technical side of the market hasn’t changed a lot. Gold has come out of the asymmetric triangle pattern to face resistance near $1,234 and that’s where we recommended entering a sell position. For now, gold can slide down to complete the retracement until $1,228. We can expect a pullback above this above $1,228 or $1,225. The RSI and Stochastics are directing a bullish trend.

Gold - 2 Hour Chart - Asymmetric Triangle

Gold – 2 Hour Chart

Gold has already crossed over 100 periods of MA which is likely to provide support to it near $1,228 today. The violation of $1,228 can lead gold prices towards $1,225 and $1,222. Good luck!

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