Gold/US Dollar spot rate – Short-term uptrend and next targets
Trading from the bearish movement of the XAU/USD (Gold/USD), i n a Daily chart, from $1,307.64 as of January 22, we noticed the end of this motion in March 17. Formation of a bullish Failure Swing bottom pattern occurred between April 29 until May 13.
First bottom was formed on May 1 with a low price at $1,169.92, followed by a top on May 5 with a high price at $1,199.57.
The second bottom was price at $1,178.99.
We observed an upward penetration of ($1,199.57) and the formation of an uptrend onwards.
This confirms a bullish
formed on May 11 with a
low the last Top from May 13
If the top falls below our break point (1,199.66) on a weekly closing basis then the Failure Swing pattern would not be valid.
Continuing with our analysis, we set up our expected targets (1st, 2nd and 3rd), which is the vertical distance from the last top to the last bottom.
Following our analysis the price has the upside potential to reach at some point the value of $1,245.00 and it is expected to rise to $1,268.32 within the upcoming weeks. Fibonacci confirms our analysis with the levels 50.00, 61.80 and 76.40 to agree with our three targets.