XAU/USD : Correction on the lower band of its medium term bearish channel
--- Follow up analysis ---
The pair XAU/USD (Gold) found support yesterday on 1700 points after the exit of its medium term bullish channel (purple lines).
We advise to traders to trade short positions as far as 1730 points is resistance. The breakout of 1700 points will offer a new sell signal. Next levels of support are at 1690 and 1680 points.
Be careful : A pullback on the lower band of the former channel is possible.
In case of return above 1730 points, we will advise to wait the breakout of 1740 points to trade long positions.
NB: Traders with a more agressive strategy could trade the pair according to the key level at 1720 points (long above and short below).
Analysis published by Vincent, the 10/25/2012 at 09h30 GMT+2
Chart of the pair XAU/USD (Gold)- Timeframe 4H
Chart of the pair XAU/USD (Gold)- Timeframe 1H
|XAU/USD (Gold) Live Chart - Timeframe : 1h|
For more reports, go to Forextribe