The price of gold ended higher in the last hours as the USD depreciated versus its rivals. XAU/USD is located at 1,942 at the time of writing. Technically, the price action signaled that the downwards movement ended and that the buyers could take full control.
As you already know, the US Non-Farm Payrolls came in at 187K versus 205K expected, that's why XAU/USD rallied. Also, the Canadian Unemployment Rate and Employment Change came in worse compared to the previous reporting period.
XAU/USD Breakout Needs Confirmation!As you can see on the H1 chart, the rate registered a false breakdown with great separation below 1,930 indicating that the downwards movement ended. Now, it has jumped above the downtrend line signaling a reversal.
The upside rally was stopped by the 1,942 - 1,945 resistance zone. In the short term it could try to retreat a little trying to accumulate more bullish energy before jumping higher.
XAU/USD Outlook!A bullish closure above today's high of 1,946 validates a broader growth and is seen as a buying signal. The weekly pivot point of 1,961 is seen as a potential target.