For 2 months now we’ve seen the gold price rally bullishly . It seems as if price could be possibly headed for its all time higher high. today price trades at 1892.25 this price is currently a few pips away from its high. In the chart you may notice how price has managed to keep a consistent bullish rise in both the daily and H4 time frames. We last reported on this pair on the 18th of May . In that post (https://fxsits.com/the-xauusd-gold-price-action-could-possibly-trades-to-its-higher-high/) price traded at 1868.00 a few pips below where price is today.
Looking at the H4 chart you may notice how price finds resistance at level 1909.07 and support at level 1874.24 . This form of price action has occurred for sometime now. We believe that if price fails to move below level 1874.24. We could see the gold price rally bullishly above its higher high. However, if price manages to break past this support we could see sellers possibly push the market back to level 1800.06 .
We believe that the long term price action for this pair is bullish however we think that a retracement is imminent. We strongly believe that the gold is currently over bought. The best time to buy this pair is after price ahs shown bullish potential on the daily time frame. Todays close be an important factor in determining whether price will move bullish or bearish. A daily bullish close will serve as a good indicator for buyers.
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