The XAU/USD (Gold/US Dollar) chart currently shows a bullish momentum, indicating a potential continuation of the upward trend.
Despite the presence of a major descending trend line, suggesting possible bearish momentum, the overall bullish momentum in the chart suggests a potential bullish continuation towards the first resistance level.
The Dollar Index (DXY) currently shows bullish momentum with potential for a bullish breakthrough of the first resistance, possibly rising to the second resistance. The first support level is at 103.50, serving as an overlap support.
The DXY chart currently displays a weak bearish momentum, although with low confidence. The potential factors contributing to this momentum are the possibility of the price breaking below an ascending trendline, which could trigger a bearish continuation towards the first support level.
Based on your analysis, the XAU/USD pair (Gold to US Dollar) is currently demonstrating a bullish momentum. The price being above a significant ascending trendline is a good indicator suggesting further bullish momentum could be anticipated.
In the short term, there’s a possibility that the price could further descend towards the first support level at 103.50 before rebounding and climbing towards the first resistance. This first support level is known as a pullback support, which suggests it could halt any further downward movement.
