Outlook on XAUUSD: Bullish play seen

On the monthly time frame, prices are testing a demand zone and holding above its ascending trend line where we could see a further upside. On the H2 time frame, prices bounced off a key support area at 1807.80, in line with the 78.6% Fibonacci retracement and 61.8% Fibonacci extension. A break above our upside confirmation level at 1832.50, which is also a key level that prices interacted with multiple times could see prices rally higher to our next resistance target at 1875.00 which is also in line with the 127.2% Fibonacci extension. Stochastic is testing support as well, supporting the bullish bias.