XAU Techs to Watch in the Days Ahead

Gold Price Technical OutlookGold is trading inside the confines of a developing channelUsing the channel structure as a guide for shaping trading outlookA quick peek at silver reveals similar is taking shape there as well
Gold Price Outlook: XAU Techs to Watch in the Days AheadThe past three weeks have been some of the most constructive for gold since the last rally ending in the beginning of the year. Perhaps this rally will suffer a similar fate, but for now the trading bias in the near-term is neutral to higher depending on where it trades within the developing channel.The channel off the lows in March is becoming an increasingly reliable structure to work with. The bottom-side parallel connects the March low with a pair of lows this month that are in relatively close proximity. Trade down to it now will be viewed with keen interest, to see if it can hold as support.If indeed price falls to the lower parallel, then look for some type of reaction that will help solidify an upward bias. Would-be longs could look to this level as a potentially solid risk/reward play, while existing longs may want to use to assess trailing stops.If the lower parallel breaks it won’t necessarily mean the tides have completely changed, but will start to muddy the waters a bit. There is some solid horizontal support around the 1764/55 area to watch as well on a dip. It would require a breaking of the channel and this support zone to really start turning the outlook towards the downside.For now, continuing to give the rise off the March low the benefit of the doubt. If it can continue to stay on track, the targeted objective is the trend-line running off the August high; the line currently runs around the 1850/60 area.

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Check out the Q2 GOLD Forecast

Gold 4-hr Chart (channel/support)Gold Chart by TradingViewSilver is trading very near the top of the channel off the March low. It is also near a swing-high from last month as well. The general outlook for silver is very much similar (unsurprisingly) to that of gold.Silver 4-hr Chart (channel/resistance)Silver Chart by TradingViewResources for Forex TradersWhether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.—Written by Paul Robinson, Market AnalystYou can follow Paul on Twitter at @PaulRobinsonFX
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