From the H4 chart, freshly painted candle action also reveals some clues as to the possible direction Gold may take today. Have a look at yesterday’s low 1251.0; check out how it stabbed into the top-side of demand seen marked with a green arrow at 1251.1 (likely removing some bids from this area). On top of this, the most recent H4 candle has a very tone after bouncing from the underside of resistance coming in at 1256.2. In the event that this candle closes on or very near its lows, we feel this unit will head lower to shake hands with demand chalked up at 1237.2-1243.9.
We do not usually like to have more than one position open at a time, but seeing as we only have 50% remaining on the USD/CHF long right now with our stop at breakeven, we may look to take a small short position on the close of the current candle with a stop placed at 1257.14.