16.07.202011:10 Forex Analysis & Reviews: GOLD Accumulation or Distribution Above $1,800?

Gold continues to stay above the $1,800 psychological level, but a USD's potential rally in the short term could force the price to decrease a little. The yellow metal is trading in the red on the H4 chart, but the bias is still bullish, the ECB meeting could bring an aggressive reaction on gold.

The metal is trading in a range in the short term, an upside breakout will suggest buying again. The US economic data and the ECB Press Conference, Monetary Policy Statement, could drive the price today. The European Central Bank is expected to maintain the current monetary policy, so more stimulus measures are unlikely today.

Gold is trading at $1,806.67 level and it seems undecided in the short term after the failure to reach the $1,818 former high. It could back down to test and retest the near-term support levels before it gives us a clear direction and a fresh trading signal.

I'll remind you that the gold price will be bullish as long as it stays above the median line (ML) of the black ascending pitchfork. The current accumulation could attract more buyers, more bullish energy, in the short term, but only another higher high, a jump above the $1,818 level will validate a further growth.

• GOLD Trading Tips

We'll have an opportunity to go Long if the gold price closes and stabilizes above the $1,818 and above the R1 ($1,820) level, the upper median line (UML) and the R2 ($1,861) levels are seen as potential upside targets. Also, another false breakdown with great separation below the median line (ML) and below the $1,800 will suggest buying as well.

A selling signal could be provided by a valid breakdown below the median line (ML) of the ascending pitchfork, this situation could signal a drop towards the downside 50% Fibonacci line and towards the lower median line (LML). This scenario is less likely to happen.