XAU/USD technical analysis: Gold price gained a lot of bullish momentum above the $1,270 resistance
|Gold price remained a significant uptrend and it started a solid upward move from the $1,238 swing low against the US Dollar. The price broke the $1,240 and $1,255 resistance levels to enter a medium term uptrend.
There was a proper close above the $1,260 resistance and the 50 hourly simple moving average. The price climbed above the $1,270 and $1,275 resistance levels. A high was formed at $1,279 and later the price corrected lower.
Sellers pushed the price below the $1,270 level and the 38.2% Fib retracement level of the last wave from the $1,253 low to $1,279 high. However, the price found support near the $1,265 level.
More importantly, there is a major ascending channel formed with support at $1,269 on the same chart. Besides, the 50% Fib retracement level of the last wave from the $1,253 low to $1,279 high. Should there be a downside break below the $1,266 and $1,265 support levels, there could be a strong downward move towards the $1,260 support.
On the upside, there is a major resistance at $1,279-$1,280, above which the price could move towards the $1,285 and $1,290. The next major resistance is near the $1,300 level.
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