Gold Price Forecast: XAU/USD yearns for a bull flag breakout amid an impending bullish crossover

FXStreet Insights Team FXStreet

Gold closed in the green for the first time in five days on Tuesday. As FXStreet’s Dhwani Mehta notes, XAU/USD is about to confirm a bull flag.

Favorable daily technical setup

“The wait for a bull flag confirmation almost seems over, as Gold price holds fort above the falling trendline resistance at $1,737. Daily closing above the latter is critical to validate the bullish continuation pattern and revive the uptrend toward the three-month highs of $1,787. Ahead of that, bulls will face immediate hurdles at the psychological $1,750 level and this week’s high near $1,770.”

“The 14-day Relative Strength Index (RSI) is holding firmer above the midline, endorsing the bullish potential. Adding credence to a likely upside, the upward-sloping 21-Daily Moving Average (DMA) is on the verge of cutting the mildly bearish 100DMA from below, portraying an impending bull cross.”

“On the flip side, a strong cushion is seen at Monday’s low of $1,733, below which the falling trendline support at $1,712 will be tested. At that level, the 100DMA creeps in. Further south, the bullish 21DMA at $1,708 will come into play, offering the last line of defense for the Gold price.”

See – Gold Price Forecast: XAU/USD to resume its downtrend and fall below $1,700 – ANZ

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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