Gold (XAUUSD) Set for Bullish Breakout

Market Analysis – October 16

The Gold price has resumed its upward movement following a brief retracement, now nearing the critical swing high at 2675.0. This level, coupled with increasing momentum, indicates a potential breakout as gold aims to extend its bullish trend.

Gold Key Levels

Demand Levels: 2600.0, 2529.0, 2470.0
Supply Levels: 2675.0, 2700.0, 2800.0

Gold Long-term Trend: Bullish

The recent pullback stopped short of the demand zone at 2600.0, coming within a few pips before finding support. The Gold price was sustained by the 9-period Moving Average (MA) on the daily chart, which has consistently acted as support around the swing lows at 2600.0 and 2470.0. This MA level helped halt the retracement, showing resilience as buyers intervened to maintain the trend.

The Awesome Oscillator is now showing increasing green bars, signaling renewed bullish momentum and suggesting a continuation of the uptrend. With the market set to break the previous high of 2675.0, there is potential to establish a new bullish Break of Structure (BOS), reinforcing the uptrend.

Gold Short-term Trend: Bullish

The bullish trend is evident on lower timeframes as well, with both higher and lower charts aligning to support an optimal trade entry. As Gold gears up for expansion, the next psychological levels at 2700.0 and 2800.0 become key targets for the uptrend. This bullish convergence across timeframes strengthens the case for an upward breakout, presenting favorable conditions for entry in anticipation of further gains. Traders seeking forex signals may find this setup ideal for capitalizing on gold’s bullish momentum.

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