GOLD XAUUSD Chart Technical Outlook holds to within the corrective channel formation, expect continued volatility.
The daily chart highlights little net movement for the last 7 trading days. This lack of clear direction resulted in a corrective channel formation being posted on the intraday chart.
On a breakout of the channel base, the current measured move target is located at $2,548. We have a demand zone located at $2,571. Taking the top of the channel formation at $2,683, and projecting the AB=CD from this level, lines up with the demand zone.
The big picture is that we are currently trading within the mixed and volatile BC leg of a Crab formation. This suggests, buying dips as the favoured play.
Conclusion: There is ample scope for a move in either direction within the corrective channel formation. I expect trading to remain mixed and volatile today ahead of tomorrow’s nonfarm payroll data.
