Last week we expected the price to work its way through to the top of the control zone at 1231.164 – 1243.880 and a possible rebound resulting in a downtrend. For now, this target remains. When the price reaches the target we expect a turnaround in the price with a downtrend towards the balance level at the control zone on 1178.270. If the price shows a breakout from its current target, we expect it to show an uptrend towards the control zone at 1308.961.
On Friday, this commodity tested the level of balance zones of interest rates at 1206.950 and after a breakout at 1215.790, the price showed an uptrend towards the interest rate zone at 1224.640.
Today XAUUSD is traded above the balance level of interest rates at 1224.640. If the price has a breakout from this level, then the next target will be the zone of interest rate around 1233.490. The breakout from this zone will mean that it has further targeted the balance level at 1242.411. Because both of these zones (1233.490 & 1242.411) are at the top of the control zone, we expect a rebound and a turnaround in the price.
An alternative for the uptrend can be the rebound of the price from the balance level at 1224.640 and the downtrend of the commodity towards the zone of interest rates around 1215.790. A breakout from this zone will mark the balance level at 1206.950 as the next target for XAUUSD.