XAU/USD – Short-Term support holding after false break
|Price action context
On the 27th of July, the price of the precious metal broke above the all-time highs from 2011 and continued to climb another $150 before sellers came in and pushed price lower towards the broken long-term resistance, now acting as support. After testing the broken long-term resistance as support, a short-term support formed at which we saw a with-trend false break on the 12th of August. The short-term support has now been re-tested again following the false break, resulting in a strong bullish rejection.
Trending analysis
Long term bullish bias and weak pullbacks into the short-term support can offer potential entry locations for traders bullish on gold, looking to go long.
Closest support & resistance zones
Resistance: 2008 - 2022
Support: 1900 - 1917
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