XAUUSD has been on an uptrend in eight out of the last ten trading sessions. The pair managed to break the resistance levels at $1,767 and $1,796, located at our 61.8% and 50% Fibonacci retracements, respectively.
The price is trading at $1,811, which is close to the resistance at the 38.2% retracement. If the pair can consolidate this breakout, we could see the precious metal back in the mid $1,800 very soon.
The relative strength index is currently at 51%, which will allow the pair to continue moving up. The RSI came very close to entering an oversold status at 30%; however, the markets reacted quickly and prevented the RSI from falling below this level.
The Bollinger bands are closing up aggressively, bringing volatility down, consolidating the price in the low $1,800’s. The price trades closer to the upper band, and some traders might start considering the price relatively high; however, our RSI is still in a safe spot, and the price could continue its rally.
Our parabolic SAR indicator suggests that the uptrend will continue.
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