The daily gold chart has charted a series of higher troughs followed by higher peaks (green zig-zags). We regard this as an uptrend. The precious metal may look to chart its next daily impulse up (daily +ve impulse scenario). We consider the hourly chart. Following the BoJ’s announcement that it will defend the 50bps level, up from the 25bps level, the precious metal’s trend-following EMAs and the momentum based stochastic indicator are in bullish mode. The stochastic is currently above 80 (red rectangle). If it can maintain this level, a positive underlying momentum will be present. XAUUSD needs this for the daily +ve impulse scenario to unfold.
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