Gold Price Prediction: XAU on the cusp of a triangle breakout to 2,000

13 Sep 2020, 00:36 · Views 1,394

Gold is in the middle of a downtrend as far as the RSI is concerned.
XAU/USD has the potential breakout to highs above 2,000.

The world’s precious metal has been trading a lower high and a lower low pattern for the past two days. A descending trendline continues to limit the upside. This week's barrier at 1,966 prematurely paused the well-orchestrated mission to hit highs above $2,000 per ounce.

Rejection at 1,966 sent XAU/USD spiraling into the support between 1,940 -1,935. According to the Relative Strength Index (RSI), gold is likely to continue with Monday's downtrend. If support at 1,935 is shattered, the precious metal could plunge to the primary support range between 1,905 and 1,910.

XAU/USD 15-minutes chart

The 4-hour chart illustrates the formation of a falling triangle pattern. A breakout above this, the triangle would invalidate the above described bearish scenario. Besides, the price is still trading above the 50 Simple Moving Average. The moving average has functioned as not only worked support in the past but also an inflection point leading to more upside movement in the past. The triangle breakout targets $2,000 per ounce in the near term. Further upside movement could extend as far as 2,100 (new yearly highs).

XAU/USD 4-hour chart

Reprinted from FXStreet，the copyright all reserved by the original author.

Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.

FOLLOWME Trading Community Website: https://www.followme.com