XAUUSD TECHNICAL ANALYSIS
Gold is consolidating within a triangle at the moment with a base around the 1321 prize zone.
Price have been swinging within a slightly downward sloping channel since late January this year and we have yet to see the main direction gold would want to take.
At the moment, traders have been swing trading and range trading the yellow metal and with trade war news getting headlines the past few months, gold seem reluctant to extend its upward trend and as seen in the chart is in a consolidating mode.
MACD histogram is above the zero line but small histogram bars indicate sideways momentum. Histogram bar is currently in red.
We are currently waiting for gold to hit higher prices and if there is a bearish price action signal we would like to take a short on gold and target areas near the bottom of the channel which have not been tested for quite some time.
Nevertheless, for gold to move down there needs to be strength coming from greenback. With the US engaging in trade wars and recent NFP data not looking too good, the US dollar has seen some weakness this week. As such, we favor a gold up move from current levels before there is a possibility of a bigger down move for this precious metal.
We are NEUTRAL on gold at the moment and would prefer to take short positions when it goes higher and when price action signal dictates.
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