GOLD XAUUSD Showing Double Bottom Pattern On H4 Chart

Gold XAUUSD is showing a solid double bottom pattern on H4 chart. Double bottom and double top are 2 reliable patterns that indicate trend reversal. If this double bottom pattern holds, it can mean gold moving up and past the $1215 resistance level. Take a look at the following XAUUSD H4 chart.

XAUUSD H4 Chart

Look at the orange horizontal line in the chart. Price is finding strong support at $1175 level. If this pattern holds, it means  price will go up and break the previous resistance of $1215.

Gold fell two percent on Thursday after better-than-forecast U.S. jobs data boosted the dollar, reviving expectations the Federal Reserve could raise interest rates soon.

Data on Thursday showed claims for state unemployment benefits declined 34,000 to a seasonally adjusted 262,000 for the week ended April 25, the lowest reading since April 2000.

XAUUSD daily chart is showing a bullish divergence pattern in the making. When you get a bullish divergence pattern on daily, it means a big move. Today’s daily candle is going to confirm this bullish divergence pattern. So don’t jump in right now. Wait for the daily candle to close and we will make the entry decision next week.

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