XAUUSD Resting On A Key Area, Breakdown Imminent







XAUUSD resting on capitulation zone

XAUUSD is resting on a very key area and trend line. It is already trading within an expansive trading range in a Square of 90 and if we are to follow the conditions of Gann’s Rule of Angles, the target area for XAUUSD to test is the 1238 value area. This temporary reprieve within this open zone is being held up by an uptrend line that started back in December of 2016. Also, we are approaching a perfect square in price and time within the Square of 90: the 50% level of time and 50% level of price intersect along with the major 45-degree angles on June 20th. Violent moves should be expected both before and after this date. Because the trend has thus far been up, this confluence zone should be treated as a resistance in time to the trend in force.