XAU/USD (GOLD) Technical Analysis

The Gold (XAU/USD) has rebounded sharply yesterday on the resistance at 1400 points, allowing the price to validate the break of its bearish slant (blue line).
A triple top has been made on 1400 points.
During the night, the price made also a pullback on the fibonacci retracement 23.60% of the last bearish rally of April.

I advise traders to trade the pair outside the range of 1375/1400 points:

- Stay flat between 1375 and 1400 points

- Trade only long positions above 1400 points.
A break of 1425 points will provide a new buy signal for an extension of the rebound towards 1450 points or higher.

- Trade only short positions below 1375 points.
A break of 1360 points will provide a new sell signal for a return to 1340 points.

NB: traders whose trading strategy is more aggressive could trade the pair based on 1375 points :
- Only short positions below 1375 points.
- Only long positions above 1375 points.
Full analysis

Analysis published by Vincent, the 05/21/2013 at 10h45 GMT+2