FX.co ★ GOLD Fights At Confluence Area

XAU/USD continues to challenge the $1,900 psychological level, so maybe you should stay away and wait for a fresh trading opportunity. The price has decreased a little in the short term even if the price action has signaled another leg higher.

The bullish pressure remains high as the COVID-19 crisis grows. The global risk caused by new lockdowns could help the yellow metal to shine again. Technically, the price of gold was only into a corrective phase, so the major uptrend remains intact.

XAU/USD is pressuring the confluence area formed at the intersection between the $1,900 with the black downtrend line. Stabilizing above the mentioned resistance level could signal strong growth in the short term.

On the other hand, a rejection from $1,900, a false breakout with great separation through the confluence area could indicate that the downside could continue.

• XAU/USD Trading Tips

Sell a bearish closure below $1,882 with an immediate downside target at $1,862 and at the lower median line (lml) of the ascending pitchfork.

Buy a bullish closure above $1,912 yesterday's high. R1 ($1,949) and the R2 ($1,968) could be used as upside targets.