Chart of the day

XAUUSD is breaking above the strong upside resistance of 1950 and is extending higher. The support zone is 1934-1950 for this extension lower.

Only a break below 1950 will invalidate this extension higher and would change the Elliott Wave long-term count. The key medium-term resistance level for a strong upside continuation is 1985.

Long trades are favored to be opened here with a stop loss below 1950. We prefer the long trade entries at this stage as we see an ongoing price action to continue higher after the strong confirmed break and a retest of 1930. Short trade entries could come only upon a confirmed break below 1950.