XAUUSD (1285.37): Gold prices managed to rally back to the 1285 level of resistance yesterday. The subdued price action within 1285 resistance and 1262 support could be seen breaking out in the near term. However, the price needs to close above 1285 in order to maintain the bullish bias towards the 1320 level of resistance. Given the strong consolidation at the 1285 handle, we expect the possibility of a fake break out near this level which could potentially trap weak long positions. The minor rising wedge pattern near the resistance level indicates a possible decline back to 1274.70 where price could retest the breakout level from the trend line.
