XAU/USD 4H Chart: Falling Wedge

Source: Dukascopy Bank SA
© Dukascopy Bank SA
The XAU/USD pair is poised for more weakness in the near-term. Technical indicators in the short and medium timeframes support this outlook, with the closest strong demand located at 1,207.50, represented by the March low and the weekly S1. The pair is expected to eventually reach the 1,200 mark and rebound from the monthly S1 and the falling wedge's lower border. In case the bullish momentum prevails, gold is to make its way towards 1,235 level, namely the wedge's resistance line, which is reinforced by the 55 and 100-day SMAs. A breach of this area is to open the door for the cross to reach March high at 1,285. Most traders also have a negative outlook towards XAU/USD, as 53% of all open positions are currently short.
© Dukascopy Bank SA
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