Gold rebounded off the resilient RSI base last week, highlighting a multi-month triangular consolidation formation. Today's test and subsequent failure of breaking above trendline resistance was aided by 4-hourly bearish MACD divergence. Coincidently, Eurogold has formed a smaller, but similar-type consolidation triange. As the US Dollar enters April, one of the worst month's seasonally, there is a strong probability that Gold could breakout to the upside. Moreover, other commodities (such as Crude oil) also hint of a breakout of recent ranges. Gold's first target would be the March 17th peak at 1133, also near a 50% retracement level. If, however, the yellow metal fails to break triangular resistance, then formation support at 1096 would be initially targeted.
