XAUUSD: Keep an Eye on 1850 and 1790

by Justin Bennett  · 

October 8, 2020

by Justin Bennett  · 

October 8, 2020

by Justin Bennett  · 

October 8, 2020

Gold (XAUUSD) is respecting a technical pattern I’ve pointed out a few times recently.

As I mentioned last Saturday, 1910 is a confluence of resistance.

It’s also the top of what could be a falling wedge.

But to be clear, even if XAUUSD takes out the 1850 support area, the uptrend since 2016 is intact.

That’s why I’ve been in favor of buying dips since April.

If the 1850 region gives out over the coming sessions, look to 1790.

XAUUSD key monthly level
XAUUSD monthly time frame

Notice how 1790 was a key factor in 2011 and 2012.

As such, any retest of 1790 is likely to trigger an influx of buying pressure.

Alternatively, XAUUSD may decide to break out from 1910 here and now.

A daily close above that 1910 area would be bullish.

It would also expose some of the recent highs near 1970 followed by 2015 and perhaps 2075.

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XAUUSD gold wedge pattern
XAUUSD daily time frame

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