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Gold Price Broke Above Trend Line Resistance

XAUUSD recently broke above the support-turned-resistance trend line at 1237 on its daily chart, indicating that the downside movement from 1295.94 had completed at 1204.77 already.

XAUUSD Daily Chart On the upside

On the 4-hour chart, the gold price ran in a bullish price channel with support at the bottom trend line at around 1241. As long as the price is in the channel, the bullish move could be expected to continue after a minor consolidation and further rise to test the first resistance level at 1258.78 is possible. A break above this level could take price to retest the important psychological level at 1300.

XAUUSD 4-hour Chart On the downside

If the gold price failed to break above 1258.78 resistance, the correction pullback could bring price back to the bottom trend line of the price channel. A clear break below the channel support will suggest that the uptrend is complete, then the pair will find support at 1235.18. Below this level will confirm that the downtrend from 1295.94 has resumed, this could trigger another fall towards 1167.

There is an import support trend line on the weekly chart now at around 1167. This level would become the final target of the bearish movement. Strong rebound could be expected after touching this trend line support.

XAUUSD Weekly Chart Technical levels

Support levels: 1241 (the bottom trend line of the price channel on the 4-hour chart), 1235.18 (the July 20 low), 1204.77 (the July 10 low), 1167 (the support trend line on the weekly chart).

Resistance levels: 1258.78 (the June 23 high), 1300 (the important psychological level).

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.