It is crystal clear that the gold is ranging in an inclined corridor (see the two inclined lines) + the prices are below the VWAP (for the moment). Since there is no volume the minute I type this, it is difficult to predict exactly what is going to happen. But here are the only 2 scenarios:
The second scenario is to bump into the VWAP and continue the down-trend, this will result that the prices will certainly reach the previous range (see the blue rectangle).
Strategy
I will personally wait for the American session to open, to observe the first impulse volume. Once the volumes are here we should see the behavior of the market with the VWAP and with the "micro-resistances" (breaking it or bumping into it). Then initiate a trade when all the elements are present.
Remember, we think in terms of probabilities, the market could be irrational, however, we tend to explain it and analyze the most probable scenarios.
The second scenario is to bump into the VWAP and continue the down-trend, this will result that the prices will certainly reach the previous range (see the blue rectangle).
Strategy
I will personally wait for the American session to open, to observe the first impulse volume. Once the volumes are here we should see the behavior of the market with the VWAP and with the "micro-resistances" (breaking it or bumping into it). Then initiate a trade when all the elements are present.
Remember, we think in terms of probabilities, the market could be irrational, however, we tend to explain it and analyze the most probable scenarios.