Gold Is Trapped in a Narrowing Price Band Lacking in Directional Bias

XAUUSD Price Analysis – February 14

Gold did not have a strong directional inclination and traded in a limited exchanging band around the $ 1,575 level during the early European session on Friday. The blend of separating powers couldn’t give any new catalyst or support the valuable metal to build up a positive shift of the previous session to the tops in a week.

Key Levels
Resistance Levels: $ 1611, $ 1595, $ 1585
Support Levels: $ 1550, $ 1540, $ 1517

XAUUSD Long term Trend: Bullish

The metal has printed lower highs and higher lows since it reached $ 1,611.49 level in early January. This took the form of a tapering price band or a declining triangle.

Admitting past the upper limit may mean the resumption of the uptrend from November lows of about $ 1455.70 level and may lead to a move past the recent high of $ 1611.49 level.

XAUUSD Short term Trend: Ranging

The day after a slight decrease in price, gold came back to the resistance region of $1575 – $1578 levels. With the RSI indicating a potential move higher, we could see some expansion in force.

However, gold requires to get through the barrier zone to affirm further advancement and besides, it additionally needs to break past the recent highs to keep up an upswing.

Instrument: XAUUSD
Order: Buy
Entry price: $1,575
Stop: $ 1,563
Target: $1,580

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