Gold rallies to trend resistance on Tuesday and forms a consolidation near 1962, which might take many traders by surprise. What to expect from the price in the near future?
After the false breakdown of the trend resistance, the price forms a retest, on which the further development of the situation depends.
The trend resistance is holding the price for a long time, in our situation there are two situations, and only the price reaction on the resistance line will give us the prerequisites for further actions:
1) or after the false break-up the bears do not allow to break the resistance, in which case the price will retest 1949 and continue to fall after the break level.
2) Or break the resistance of the trend and continue to 1984.
Strong resistance: the upper limit of the channel, the level of 1962
Strong support: 1954, 1949.
I expect that against the background of weak fundamental data for the dollar, gold will be able to break the resistance and to start the next stage of recovery.
Sincerely R. Linda!