XAU/USD Is At Overhead Resistance

Russell Shor, CFTe, MFTA FXCM

The below is the daily chart of the XAUUSD. The precious metal has approached overhead resistance (red shaded horizontal) around the $1,325 level. If price breaks above this area it will chart another higher peak. I.e. there will be a higher trough followed by a higher peak. This will infer a continuation of the uptrend and as long as the RSI stays above 50 (blue rectangle), this is the likely scenario. However, if the resistance level holds and price pulls back, the precious metal may chart an “M” pattern or double top, which will see a waning of the upwards momentum. We await the release of the FOMC minutes on Wednesday 7:00pm (GMT) which are likely to influence price direction.

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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