Gold Edges Higher on Improved Sentiment Past $1,600 Level

XAUUSD Price Analysis – February 19

The XAUUSD pair advanced to the highest zone after January 8 at $ 1,611.07 level and passed the impressive interval of a fresh seven-year top. Although, due to the improvement in sentiment in the American session, the pair erased part of its prior profits and last traded at $ 1,606.90, still adding 0.33% per day.

Key Levels
Resistance Levels: $ 1,640, $1,625, $ 1,611
Support Levels: $ 1,595, $ 1,585, $ 1,550

XAUUSD Long term Trend: Bullish

Since the formation of a support base past the $ 1567 level, the price of gold began a fresh advance versus the US dollar. The price advanced gradually, overcoming the resistance levels of $1,585 and $1,595.

Any further advance may usher in price to a level of $ 1,625. On the other hand, there is a risk of rectification down beneath the level of $ 1,585. In general, the price of gold has returned to the bullish zone, and it may further its advance past the threshold of $ 1,611 level.

XAUUSD Short term Trend: Bullish

The 4-hour XAUUSD chart indicates that the price gained bullish momentum after it surpassed the $ 1575 level and resolved well past both 5 moving average (red, 4 hours) and 13 moving average (4 hours, blue).

On the other hand, there exist several support levels around the $1,585 and $1,580 and besides, a bullish pattern is formed on the 4-hour XAUUSD chart with support for around $ 1,578 level.

Instrument: XAUUSD
Order: Buy
Entry price: $1,600
Stop: $ 1,585
Target: $1,625

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