- XAU / USD is up more than 2% on Monday.
- The $ 1900 break appears to have been a key trigger for the recent rally.
The XAU / USD opened sharply higher on the first day of 2021 and retained its bullish momentum with the technical breakout that attracted more buyers. At time of writing, the metal is up 2.50% on the day and is trading above $ 1940, after marking a new high in months at $ 1943.
Technical perspective of the XAU / USD
Gold appears to have broken above the ascending triangle that formed in December. Furthermore, the price also rose above the critical 100-day simple moving average, confirming the bullish momentum. However, with the latest rally, the Relative Strength Index (RSI) indicator on the same chart reached overbought territory for the first time since August 2020, suggesting that there could be a technical correction before the next bullish leg. .
On the bullish side, $ 1965 (Nov 9, 2020 high) lines up as the next target ahead of $ 2000 (psychological level). Supports, on the other hand, could be seen at $ 1900 (psychological level / resistance before the triangle), $ 1893 (100-day moving average) and $ 1888 (rising trend line).
Golden day graphic
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