Gold rebounded USD 14 yesterday. Back from the weekend, the market opened at 1774, and the price has traded mainly between 1770-80 throughout the Asian & European sessions. As the trading hours approached the US session, the price cleared the resistance at 1780 and jumped to the day-high at 1790. The day ended at 1788.
In the 1-hour chart, gold is still maintaining its path within the uptrend channel(1); however, the buying above 1790 has been weak since the US employment figures last Fri. An S-T resistance line(2) has formed in the past 24 hours; if the price clears the selling resistance from the line, the price should be able to reach 1800. On the other hand, if the price fails to stand above 1790 in the next 24 hours, gold may naturally escape the current uptrend channel, triggering a round of consolidation.
The rally yesterday has led gold to test the resistance of the downtrend channel(3) again, continued to tangle by the 1780-87 resistance zone. Notice that if the price stays above 1780, it will escape the downtrend channel(3), ending the bearish trend.
S-T Resistances:
1800
1795
1790
Market price: 1785
S-T Supports:
1780
1770-73
1765
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