The yellow metal broke the nine consolidation sessions today and clocked 1333 2018 new highs and added $11.50 since yesterday. Gold bulls continue to overtake U.S Dollar bears as the DXY dipped today to 91.05 low.
Technically, we can notice on daily time frame that gold has broken above the red channel which pushed the prices higher gave XAUUSD extra momentum upward, but expectations that gold bullish uptrend could fade away as prices are confined inside the light blue rising wedge. Add to that, daily RSI stands at 72 level which indicates an overbought market. Expectations a highly shared among analysts that gold will clock higher prices in 2018, but before that, gold should make a minor downward correction at 50 Fib level or 38.2 level, to recoup bull forces and push higher.
As for fundamentals. eyes are all focused on U.S inflation report today which will be released shortly.
XAUUSD Technical overview:
Target price: None
Resistance: 1326.30, 1330+/-, 1336.00
Support: 131640-10, 131160, 130710
Trend reversal price: 1293.70 (20-EMA)
Comment The market is bullish and may try to reach the 1330+/- objective and possibly 135200. Trade is positioned to extend rallies today, but be on guard for a stall and setback up around 1330+/-. Sustained action under 131640-10 cautions for a slip lower. A drop under 1307.10 alerts for a near term reversal into corrections back under 1300-, cautioning for back tracking to the 1293.70* support.