XAUUSD Technical Update 10/1/11
For further Gold Technical Analysis.
- Gold has moved to an intra-day high of 1640.01 which is slightly below the daily high of 1641.53 from 21/12/11 – a level which represents a lower high swing point as highlighted on the Gold chart below.
- This comes after support was found on 29/12/11 after breaking through the prior spike low from 26/9/11 at 1532.64. This has subsequently proved to be a bear trap with the Gold bulls taking price 4.27% higher so far this month.
- If observing Silver as Gold took out key 1532 area support traders would have observed that Silver failed to make a new low and is now likewise moving to the upside.
- A strong move above the aforementioned 1641 Gold technical level could potentially bring the prior lows from late November into focus as a short term target.
- A failure to keep above the 1641 area on the daily closing basis could see the formation of range highs and potentially another downside move to test 1530 area lows. Much of this could be determined by risk appetite and dollar strength with the likes of GBP/USD and EUR/USD in corrective moves higher this week to date and subsequent dollar selling in the nearer term.
Gold (XAUUSD) Daily Chart XAUUSD
By forex-fx-4x.com
