The precious metal finally broke the channel it was trading on for eight days and could continue moving upwards in the short term, the short and long-term moving averages are about to complete a crossing that would be indicating a downwards trend, however as the price continues rising this cross might not be completed, allowing the price to climb in the upcoming sessions.
The Bollinger bands are very narrow but they are starting to open up at the edges, which usually means we would have higher volatility and a possible trend change, where the price would be moving upwards. However, the pair trades closer to the upper band, suggesting that the price is relatively high, we need the upper band to expand more aggressively in order for the pair to continue moving upwards.
The relative strength index is at 56% which will give the precious metal enough room to continue its quest to the top of the chart. Once the pair gets closer to the 70% overbought status, we could expect a retracement shortly after. Our parabolic SAR indicator suggests that the price will continue to move upwards in the short term.
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