FX.co ★ Gold: new uptrend needs confirmation

XAU/USD Downtrend Line As Resistance!

The price of gold developed a strong upward movement and now is located at 1,915 at the time of writing. Now, it is almost to reach the downtrend line which represents an upside obstacle. As long as it stays below it, XAU/USD could drop again.

As you can see on the H1 chart, personally, I've drawn an uptrend line which represents a downside obstacle.

XAU/USD Trading Conclusion!

Staying above the minor uptrend line and passing above the downtrend line could announce that the downside movement ended and that we may have an upside reversal (larger growth). Jumping and stabilizing above this upside obstacle could bring us new buying opportunities.