XAUUSD Momemtum divergence
Gold is attempting to rally towards the $1,750 resistance zone today as weakness in the US dollar currency propels the yellow-metal higher. The four-hour time frame shows that the price of gold could explode to the upside if the $1,755 resistance level is broken. However, bearish price divergence is building on the Momentum indicator, which suggests a sharp pullback could occur if gold bulls fail to break above the $1,755 level.
XAUUSD is only bullish while trading above the $1,720 level, key resistance is found at the $1,755 and the $1,800 levels.
If XAUUSD trades below the $1,720 level, sellers may test the $1,710 and $1,677 support levels.