XAUUSD market technical outlook

So, bulls broke mid-term resistance zone 1737.82-1743.45 and now they move with good dynamics to the recent peak of the structure at 1764.36. Will they be able to pass this barrier without downward correction - it’s the main question of the week. But potential of gold market so far is evident.

H1-chart:

Within local structure a corrective downward pullback will probably be performed as amplitude of upward movement could de-energize buyers and some of them will prefer to book profit.

The most optimal area for new long trades appears the pivot-zone 1736.39-1737.82. Thus this zone is the utmost point for downward pullback of the market today.

Conclusions:

Main scenario: Decline in direction 1736.39-1737.82 and then extension of growth to 1757.68 and 1764.36.

Alternative scenario: Extension of growth in direction 1764.36 from current levels.

Trading recommendations:

1. Cautious intraday shorts to 1736.39-1737.82.

2. Longs from 1736.39-1737.82 to 1757.68 and 1764.36.