Gold vs Euro (XAU/EUR): Preparing for a Breakout

After breaking out of the sideways channel, gold shows a strong upward trend. Currently, we observe consolidation near a key resistance level with the potential for either an upward breakout or a pullback.

Key levels:
• Buy Stop: 2769 EUR
• Sell Stop: 2731 EUR

Possible Scenarios:
1. Breakout Upwards: If the price consolidates above 2769 EUR, we may see a rise towards the 2785-2800 EUR range.
2. Pullback Downwards: If the price breaks below the 2731 EUR support, a drop towards 2700-2680 EUR is possible.

What to Consider:
• Trading Volume: An increase in volume during the breakout will confirm the direction.
• Fundamental Factors: Key economic news from the Eurozone may influence price movements.

My Approach:
I set pending orders for both scenarios and act only after confirming the breakout.