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XAUUSD Bullish Momentum Hinges on 1725

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Last week, Daily Price Action members and I were watching a retest of a key support area for XAUUSD (gold).

The area I’m referring to is the bottom of a recent wedge pattern near 1690.

We saw XAUUSD sellers take out the top of that wedge at 1705 on May 27th, but I told members to watch to see if the market could recover.

Here’s that comment to members from May 27th:

Notice how gold recovered back above the top of that wedge pattern near 1705 on a 4-hour closing basis.

That was the first buy signal.

Next was the May 29th close above descending channel resistance just above 1720.

We haven’t seen a retest following that breakout, but so far today, XAUUSD is holding onto Friday’s breakout.

As for what to watch this week, I would keep an eye on 1725.

That area served as support throughout mid-May, particularly if you view it on the weekly time frame.

As long as that 1725 support area is intact, I like gold higher into the 1750/60 resistance area.

If we don’t see XAUUSD pullback from its current price, buyers will need to secure a close above 1765 to expose the next key resistance near 1800.

Alternatively, a close below 1725 would indicate weakness, and a break below 1700 would delay the bullish outlook and expose the 1640 support region.

Want to watch the XAUUSD video I just released in the member’s area?

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XAUUSD daily chart showing wedge and channel patterns
XAUUSD daily time frame

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7 comments
Justin Bennett says

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    Claire Oseghale says

    Pls how do I register as a member to join the members group?

    Reply
Ishanka says

I am from Sri lanka sir. I don’t no enything about Forex trading
I want to learn a to z about Forex trading.pls help sir

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Ngo Sy Ha says

thanks you fof analysis

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mazen says

will down to 1962

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Samuel says

Am grateful for the up dates please.thanks.

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Sam says

Thanks!

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