The XAUUSD H4 chart is showing strong appreciation. However, the area around $1,865 is resistance (red shaded horizontal). The weekly chart might influence this timeframe. Here we see that gold has charted a lower peak followed by a lower trough, which is technically a downtrend. In this regard, keep an eye on the weekly stochastic. It's near the 20 level - if it drops below and holds (green rectangle), the longer-term momentum will be bearish. However, if it turns and moves towards 80, the market may view the precious metal as value in the current climate and rotate capital into XAUUSD.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.