As can be seen on the chart, the XAU/EUR is in the middle of correcting a five-wave decline that should take prices towards 1615/25 before the resumption of the down move. Whether the move lower is the third wave of an impulsive decline or the C wave of a corrective decline doesn't matter, the XAU/EUR should go lower. If the pair breaks above 1642, our analysis would be wrong and we would exit the trade. As a result, I would enter a short position at 1620, with a stop loss at 1644 and a take profit at 1584.
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It looks like we called the end of the 5th wave a little too early at 1607. The markets continued a little lower to 1597. As long as this holds, we see a correction higher towards 1607/1610. My view is still bearish on the pair as I still see an impulsive decline lower, but I prefer to wait to find another entry point