Gold has been consolidating within a wedge for the recent past and the trend traders have not really had a chance to get into any positions. The dollar has had some major boosts as well as letdowns from a fundamental perspective in regards to the economic status of the country which has led to the pair being range bound within this wedge.
Yesterday we had XAUUSD test an upward trendline for the forth time at 1792 where it has consistently held forming higher lows since September last year. The bulls on Tuesday this week were also unable to break the downward trendline on the second retest at 1854 causing price to rally back down within the last two days.
As we close the trading week, we await to see whether the trendline will hold yet again and the bulls prevail or price will finally break this level and we may start looking for short opportunities. It is also noteworthy that this level coincides with a support zone on the lower time frames (H4) which makes it of key importance to watch as you trade the pair.