Dear traders, Gold (XAU/USD) is moving sideways in a triangle chart pattern. This signals a continuation of the established uptrend.
4 hour chart
The XAU/USD needs to break above the resistance trend line and Wizz 5 level. This would confirm (green check) an uptrend within the wave 5 (purple) pattern. The triangle is either fully or nearly completed. This means that price could be building a wave E (purple) of wave 4 now or soon.
An unexpected bearish breakout (orange arrows) could take place too. But price action remains in bullish territory despite the deeper retracement. A bounce at support is expected (green check). Only a breakout below the previous support zone would make a wave 4 less likely (red x).
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up up to our newsletter