XAUUSD Analysis: Breaks from rising wedge

Dukascopy Bank Team Dukascopy Bank SA

In result of the previous trading session the price of gold decreased by more than 0.86% amid the better than expected New York Manufacturing Index release and lower interest for safe haven assets. From technical point of view, this plunge matched with a breakout from the rising wedge pattern, which formed at the intersection of two ascending channels. The fact that the exchange rate is now located below the 55- and 100-hour SMAs as well as the weekly PP suggests that appreciation of the buck is going to continue at least until the clash with 200-hour SMA near 1,287.05. The bearish scenario looks more plausible also from daily perspective, as it clearly shows how the pair failed to surge above the monthly PP at 1,304.85.

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Dukascopy Bank Team

Dukascopy Bank SA

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