Last week, as expected, gold priced in USD finally broke by the top the triangle formation (1) in which it was confined for the past 2 weeks. The next day the upward momentum continued with a break of the previous day's high confirming the continuation of the uptrend that started in late january 2017.
The price of gold in USD broke the first resistance (2) we identified in our last article at 1256.00 (61.8% fibonacci retracement - daily chart) and as of now seems to stay above it indicating that it might try to move to the second resistance at 1278.00 (61.8% fibonacci retracement - weekly chart). Another confirmation of this move would be if there is a break of the high of last friday's candle (3).
According to the egoldfx TrendStrength Meter, since the last cross (1) between the gold strength line and the USD strength line, the USD has touched the bounce line (2) and seems to move upward (3) indicating that a new cross between those two lines might come sooner than later, which would trigger a trend reversal alert. Such an alert will need to be confirmed by a break of a trend line or a support level. As of now, there are still plenty of room between those 2 lines but we need to watch them carefully since they give warning signals much earlier than most technical indicators can.