XAUUSD entered consolidation after a bearish pullback from recent record highs. The pair has seen a bullish momentum since the beginning of April. It has remained above the $1900 area indicating a possible move to the upside.
The Fibonacci retracement levels from the time of the recent low now show support at the 78.6% line. A bullish divergence on the momentum indicator strengthens a move to the upside.
Should the momentum drop further, the divergence will be more evident.
A test at the trend line sees prices touching the 61.8% Fibonacci area. Should the prices remain away from the Ichimoku cloud, then the next levels of the Tenkan and Kijun lines should be noted.
The 4h chart looks towards the recent weekly high and lows. Prices are now testing the trend line and look to be supported. The recent divergence on the momentum indicator hints to bias being on the upside.
The $1922-$1992 Fibonacci leg shows the next target being 61.8% after it has cleared the 78.6% level. Should prices enter the Ichimoku cloud, then the progression to further fresh highs would be likely.
The target of $1992-$1993 is the confluence of the long term and short term Fibonacci retracement lines.
