XAUUSD Technical Analysis

So far gold has been continuously retesting the descending wedge top resistance line, more than 3 times, proving to be a major resistance level.
The descending wedge looks to be a bullish flag in the 1D timeframe.


Technical Analysis for short term:
- Breakout above 1710 --> Take profit 1 @ 1720 the first resistance + TP 2 @ 1730 the historical major resistance
- A strong rejection from the top of the descending wedge at 1708 --> Take profit 1 @ 1692 the first support level + TP2 @ 1673 if it breaks below TP1

Stochastic Oscillator displays a descending crossover towards the 40 mark, typical of a bearish pattern.
MACD displays a slightly bullish slope in the green, although it would be noted there's a hidden divergence in the decreasing buy volumes. This possibly precedes a bearish reversal in near future.
Most Techical indicators point to a dying bull pressure, to a possible strong SELL in the short term.

Fundamental Analysis for long term:
Then again, GOLD is heavily sensitive to economic forecasts:

• -Highest US household debt in record
  Risk adverse investors fearing a possible second wave of pandemic after gradual easing of COVID measures
  US- China Tensions and possible trade war
  

These points to investors turning to the one historic hedge against risk: GOLD , therefore we can look for a LONG TERM BUY opportunity. Things to watch out for is the China reaction to US accusations about the virus, an easing of tension would point to a temporary drop in gold price.

Comment:

1H Timeframe looks to be forming a double top: a bearish reversal pattern.

Now to wait for the hourly candle to close and next confirmation candle to enter SELL GOLD opportunity.

Trade closed: target reached:

As described above,
SHORT has been taken for a take profit 1 at 1694! Closed slightly above as it was getting close to the support level :)

Thank you guys for the support,
just a humble beginner trader starting out.

Trade active:

Our next target is @ TP2 1674
Open SHORT