The recent minor sideways range compression of Gold (XAU/USD) in place since 3 July has reached a potential tipping point for at least a minor breakout scenario.
Two key elements have increased the odds of a bullish breakout scenario. Firstly, Gold (XAU/USD) has retested the medium-term ascending trendline support in place since 31 December 2024 low for the third time on last Thursday, 21 July.
Secondly, in conjunction with the third retest on the medium-term ascending trendline support of Gold (XAU/USD), the hourly MACD trend indicator has traced a bullish divergence condition on 17 July, inched higher, and staged a MACD-Signal line bullish crossover in today’s Asia session at this time of writing.
Watch the US$3,328 short-term pivotal support, and a clearance above US$3,374 upside trigger level may see a minor bullish breakout unfolding for the next intermediate resistances to come in at US$3,400 and US$3,450 in the first step.
On the flip side, failure to hold at US$3,328 invalidates the bullish scenario for another round of minor choppy corrective decline sequence to expose the next intermediate supports at US$3,309, and US$3,293/3,282.
