Gold is in Neutral zone, will comfortably Trade the breakout

Gold's general outlook: Gold is once more used as a safe-haven and ground for continuous spiked Price-action. Technical Selling proper trend is in continuation as Gold engage the decline in combination of DX soaring and U.S. Stimulus negotiations far from over. Bond notes found the Support which is positive sign for Sellers. Mentioned sentiment spiked Gold downwards (Supply-Demand) as market speculators was in expectation of Biden’s speech outcome and how markets will digest current news. This combination most likely provides the Gold with a very steady uptrend on Hourly 4 chart where the next Higher High is projected within #1,900.80 - #1,910.80 zone. Hourly 4 chart was Trading within obvious Triangle (adding more uncertainty), and was a Technical turning point back representing current Short-term Bearish dominance. At the moment, Gold can be used as a hedge (Trading in Neutral zone) as I can see a test of #1,765.80 (November #2020 Low zone) if Price-action fails to break #MA50 on Daily chart. Current range was formed as Gold broke the Hourly 4 consolidation Rectangle and was approaching the Daily Resistance (values illustraded on Xau-Usd Spot prices). Within the next #2 sessions, major move on Gold should be spotted as market is waiting for a catalyst.


Technical analysis: Another Lower Low test throughout Friday’s session on the Hourly 4 chart and #1,835.80 as the new Lower Low is expected next at #1,818.80. I am Trading currently on pure Bearish gradient as Price-action is Trading on the Hourly 4 chart where all indicates on a Medium-term Selling opportunity, if Stimulus news are postponed again, and Resistance remains preserved. My model require to close one Daily candle below the strong Support though which is now priced at #1,823.80. Strong rejection followed the Bullish U.S. opening Bell on Friday since DX (my main market at the moment regarding correlations) entered the uptrend, breaking all Resistances as I don’t think that other correlating assets will have any strong impact since strong Selling pressure from DX will remain (minimum for #2 more sessions), which could alter the general uptrend potential on Gold.


My position: Since my Profits were great in the past week (and in general), I will be comfortably waiting for a breakout. If #1,845.80 breaks, I will be looking to Buy Gold towards Daily chart #MA50. If however Support of #1,823.80 breaks, there is strong possibility for an #1,805.80 extension. I have no other option than to avoid risks and only Trade the certain breakout.