The precious metal managed to gain 2.5% during the last five trading sessions. The price broke the resistance level in our 50% Fibonacci retracement at 1796.84; this is a significant level since it usually indicates a trend reversal; we would have to wait and see if the break is completed in the next trading session.
The Bollinger bands are opening and moving up, indicating that the trend could now be upwards; however, the price is trading closer to the upper band, and some traders might believe that the price is relatively high. We should see higher volatility in the upcoming sessions.
The relative strength index is currently at 62%; hence the pair has some more room to continue the uptrend and potentially confirm the breakout on the resistance. Once the RSI gets closer to 70%, we could see a temporary retracement, which will help the pair gather strength to continue moving up.
Our parabolic SAR indicator suggests that the price will move up, while the moving averages are getting closer to a golden cross that will change the overall trend of the pair.
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