Chart of the day

XAUUSD has broken above the upside falling wedge resistance of 1915. This break needs to be confirmed. A break above 1950 is needed for this confirmation,

This is still viewed as the fourth wave pullback of the recent five upside waves and consolidation could come to an end if we see a test and a break above 1950. If we get a confirmed break below 1900 an upside reversal can be invalidated and we could see a deeper pullback and a test of an important 1800 downside resistance instead of an immediate continuation.

Long trade, you can open here with the stops below 1900. We favor the long trade entries as we expect an upside extension in the fifth wave. If we see a confirmed break below 1890 we could revert to a short trade for the medium-term.