- Gold has something to offer for both the bulls and the bears.
- The daily and weekly outlook is in contrast to that of the monthly outlook at this juncture.
As per the prior analysis, Gold Price Analysis: Bulls back in town through critical resistance, we have seen the pullback that the bulls were looking for, offering a discount to target higher highs in what is expected to be a weaker US dollar environment in the medium and longer-term.
As illustrated, the price did indeed go to test the resistance but burst right through it, against the grain of the longer-term charts.
A correction to the old resistance would be expected to hold at least to the structure if not just slightly above it near the 38.2% Fibo.
The price has dropped further than anticipated, which is a bonus for the bulls, clearing out stale stops in what will be presumed to be the foundations for an extension to the upside.
The weekly chart is also a bullish supporting factor:
The W-formation was completed with the test of the neckline so an upside continuation can be expected.
The week, so far, is looking bullish as well with the wick that is expected to be filled in on the daily time frame.
Meanwhile, however, the following is an illustration of a bearish bias on the longer-term time frames:
The 38.2% Fibo retracement was made this week and bears can be looking for a downside opportunity depending on the daily ad weekly price action.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.