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Gold is Testing June's Rising Trendline

Gold (XAU/USD) has been bullish in June. After finding a price bottom above 1240.50, gold price rallied and stalled today at 1285. 


(xauusd 4h chart 6/16)

Note that there was a falling trendline extending from a previous triangle. The 1H RSI was also above 80, which was overbought. Traders faded gold during the 6/16 session, and price is just above 1270 as the market gears up for the 6/17 session. 

As we begin the 6/17 Asian session, traders see a bearish attempt that is still supported above June's rising trendline. A break below this trendline might open up the bearish continuation outlook, first with 1250 and 1240 in sight. 

However, above 1270, price still has momentum and a bullish structure, with upside toward the 1290-1300 area, which was the apex of the previous triangle. A break above 1300 however will be needed to open up a bullish scenario that is outside of the currently bearish mode.