For a while now we have seen the Gold price tumble from its higher high. the XAUUSD(gold) fell short before finding support at level 1764.50 .Now our analysts ask a question. Is this simply just another retracement from a bullish trend or will price continue bearish? We’ll take a look at what price action says in order to answer this.

XAUUSD Daily chart 3 December 2020

In the daily chart you will notice how price has been dropping for the past 3 months after resisting at level 2074.37 .Price fell as low 1764.50 before slightly pushing bullish. In the chart you will notice that price also finds support on the trend line before moving bullish. Today, price currently trades at 1834.14 at the time of this post.

This provides the opportunity for buyers to enter the market at a cheap price. We believe that a good number of pips could be made if we trade the pair to its higher high. Possibilities are we could see the Gold price break past its higher high early next year.

XAUUSD H4 chart 3 December 2020

The best thing we can do now is wait for the right entry in order to ride this trend. If price manages to close above level 1885.46 .There are high possibilities that we should expect price to soar bullishly .

NB: Warning Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consider position sizing before entering a trade and manage your risk accordingly. Please read the risk warning before deciding to trade the markets.

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