By: Colin Jessup
XAU/USD has been trading in an ever tightening channel making lower highs and lower lows (for the most part) since the beginning of March. The pair is now below 1651 again and if its pattern holds we will most likely see 1635 in the next couple of days. There is support for the pair at the 1645 area as well as the Weekly S1 at 1635. Further support comes in at 1624 but if the channel pattern holds we could see a test of 1600 again before reversing. Anyone trading this pair intra-day, and I know you brave souls are out there, will also see support at 1644. To the upside, the Weekly Pivot will offer resistance at 1651 along with the Monthly Pivot at 1653, and the top of the channel sits at about 1659.
Happy Trading!