XAUUSD – At Key Resistance level

<p><strong>XAUUSD,</strong> H4 – Last night, Gold prices rebounded near the key resistance again, creating a high around $1,736. The price raised prior the announcement of US Jobless claims, which came out much higher than the expected at 2,981K from the forecast of 2,500K. That came with a warning of a new outbreak of Covid-19 that may be even more severe than before. However, the US stock market last night all closed up positive, with Dollar firmer.</p>
<p>After the relaxation of the lockdown measures, the short-term economic development trend is not improving, affecting market sentiment along with the fear of a second wave of Covid-19.</p>
<p>From the technical perspective, in the H4-chart, XAUUSD last night broke the upper line of April’s triangle, and as I have already written, the asset has the opportunity to develop a triple top reversal pattern.</p>
<p>By breaking the triangle’s upper line (dotted line) to retest the April 23 high, suggests that if the buying power remains strong , a move above the of the $1,738 – $1,746 area, may be the start of the return to 2012 highs, around $1,800. This may have to wait to see the trend of Covid-19 concurrently. If XAUUSD failed to pass $1,738 – $1,746 Resistance area, then it could find Support back to $1,722. A move further lower could lead gold at the bottom line of the channel, i.e. at $1,710.</p>
<p><strong>Click </strong><a href="https://www.hotforex.com/en/trading-tools/economic-calendar.html"><strong>here</strong></a><strong>  to </strong><strong>see the economic calendar.</strong><strong> </strong></p>
<p><strong>Chayut Vachirathanakit<br />
Market Analyst – HF Educational Office – Thailand</strong></p>
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