After a heavy sell off, Gold has been established with its price support zone from 1,766.xx to 1,775.xx. From there, a strong rally has been made for Gold today and it has broken up the 1,800 price handle again.
Technically Gold has probably ended its C leg in a Zigzags pattern for an ABC correction, but it is not confirmed yet. Firstly the 1,815 price zone at D1 TF has to be held and around that price zone, a demand zone must be formed to support Gold after a large down move.
The next key level we are looking for at 1,825.xx; that price zone has to be broken out in the coming time, then we are expected to see Gold be being traded at 1,920.xx again.
For the short term time frame at H1, we recognize an inverting H&S trading pattern, in which the throw below has formed the inverted head for Gold and the left shoulder already formed before; now the range from 1,817-1,823 should be the coming resistance zone for XAUUSD in the short term.
In case the 1,823.xx price handle will be reached but being denied there, then we have a lower range at 1,800.xx as support zone to be expected. At that zone, price is pulling back for a short term correction. So that scenario will provide us a pattern of Head and Shoulders on H1 TF. Next is to keep waiting for a breakout to buy again.
Momentum and trending indicators at D1 have just been recovered from the deep, a sign for a next up move. At D1 TF the price has indeed been trading below the 65 SMA and now above the 200 SMA. A range will be formed within that zone with a 200 USD range.
We will keep monitoring about XAUUSD in the up coming events as soonest.