XAUUSD hit support after a downward move on the 27th of April around the 1692.00 area. This support was again tested after a pullback but it held.
This led to the formation of a double bottom pattern as shown in the image below.
As such the price is poised to rise in the short term
Traders should look to buy once the price closes above the neck of the pattern. Our position is further corroborated by a moving average crossover, signalling a turn to the upside by the price.
Take profits should be place before the next resistance while stop loss level should be just below the pattern bottom.
As always good money management is advised.
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