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Gold is trading at $1,973 level after another false breakout above a dynamic resistance, it has changed little in the last hours and I believe that a USD's rally could send the yellow metal down in the short term.
The price has reached another all-time high at $1,986.76 level, so the bias remains bullish, even if we see a minor retreat, which could be normal after the last amazing rally.
The gold price continues to stay below the 250% Fibonacci line after the fourth false breakout above it. The price action has developed a minor rising wedge pattern, so a drop towards the warning line (WL1) could be natural if the price fails to close above the $1,980 level.
The yellow metal is trapped between the 250% line and the WL1, an upside breakout from this channel will suggest buying with a potential target at the WL2.
Buy another higher high, if the gold price closes above the $1,986 level, or a valid breakout above the 250% line. The first potential target is seen at the $2,000 level, while the second upside target could be represented by the warning line (WL2).
Gold could slip lower in the short term, but the outlook will remain bullish as long as the price is traded above the first warning line (WL1), so we may have a great selling opportunity from below the WL1.
We could sell another false breakout above the 250% line or any other reversal pattern that will announce a downside movement.
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