XAUUSD has been trading with a bearish undertone since hitting record highs in August. An attempted resurgence in August saw a freefall to the $1760 area at the back end of November.
However, currently, bulls have fought back to lead the yellow metal to regain over $60 since the beginning of the week.
We now look for a break past the 23.6% of the 2073.98/1764.89 Fibonacci leg in order to claim more upside bias.
A potential bullish divergence noted on the momentum indicator suggests prices could run into the 38.2% and then cloud engulfment.
A shorter intraday assessment shows that the pair is currently trading in an ascending channel. Another attempt to break the lower channel is boosted by a strong bearish divergence.
However, should bulls find a bounce at the specified region, then another attempt towards the median regression could be likely.
With prices trading away from the Ichimoku cloud, the ascending channel could remain for the short-term.
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