XAU/USD 4H Chart: Falling Wedge

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Gold has been depreciating versus the greenback since March, and the fact the falling wedge on the 4H chart is 222-bar long speaks in favour of the strong downtrend. The trading range is narrowing, however, it is too early to speak about the breakout. Currently, the pair is bounded by a weekly pivot at 1,292.54 from the downside and daily pivot and 200-period SMA at 1,298.57. Aggregate technical indicators are sending mixed signals, while market sentiment is strongly bullish, with 71% of opened positions being long. Keeping in mind stronger demand for the bullion amid Ukraine tensions, the pair is likely to penetrate the recent high soon and head towards the upper trend line.
© Dukascopy Bank SA
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