XAUUSD - Decision Time For Gold you don't wanna miss
We have approached a point in trading Gold when we have to wait for the market to decide whether it wants to break this last support at $1680 or we might see a bounce where there arises a possibility of triple tops and the price above $2000/ounce again.
Circumstances prevail that we are either waiting for a clear break-low or a clear bounce to decide on our position again. For now, we just wait!
Logic behind waiting for $1680 to break:
In order to assume a short position on a double tops pattern, we need to see the price breaking lower than the base of the double tops. If it does not happen we wait for it to happen. If it bounces to produce another pattern, possibly triple tops, we will buy to the higher level resistances (supply zones).
Therefore, do not be hasty in reaching a conclusion about your position and wait for XAUUSD to give a clear indication about its intention to either break lower to the pre-pandemic levels or bounce back to the higher levels.
Looking at the present condition we have two possibilities:
1- We might see gold back to the price level of $1450-1500/ounce
2- There is also a possibility to see gold bounce from $1680/ounce back to $19xx or even higher
What is the greater possibility?
In my personal opinion, we see $Index rising to some history making levels. USD is not giving it a break! Feds policies are pushing the strength of the American Dollar to unprecedented levels. If that does not come to an end, XAUUSD has no reason to bounce back from the upcoming support. Therefore, we are good on holding gold short but I would certainly recommend waiting for the level $1680 to break, I will personally sell with you!
About me:
I manage jointly funded forex account (PAMM) with one of the world's oldest forex brokers. I have over three years of experience in teaching Financial Analysis and Managing Funds.
Circumstances prevail that we are either waiting for a clear break-low or a clear bounce to decide on our position again. For now, we just wait!
Logic behind waiting for $1680 to break:
In order to assume a short position on a double tops pattern, we need to see the price breaking lower than the base of the double tops. If it does not happen we wait for it to happen. If it bounces to produce another pattern, possibly triple tops, we will buy to the higher level resistances (supply zones).
Therefore, do not be hasty in reaching a conclusion about your position and wait for XAUUSD to give a clear indication about its intention to either break lower to the pre-pandemic levels or bounce back to the higher levels.
Looking at the present condition we have two possibilities:
1- We might see gold back to the price level of $1450-1500/ounce
2- There is also a possibility to see gold bounce from $1680/ounce back to $19xx or even higher
What is the greater possibility?
In my personal opinion, we see $Index rising to some history making levels. USD is not giving it a break! Feds policies are pushing the strength of the American Dollar to unprecedented levels. If that does not come to an end, XAUUSD has no reason to bounce back from the upcoming support. Therefore, we are good on holding gold short but I would certainly recommend waiting for the level $1680 to break, I will personally sell with you!
About me:
I manage jointly funded forex account (PAMM) with one of the world's oldest forex brokers. I have over three years of experience in teaching Financial Analysis and Managing Funds.
For continuation of the bearish tide, we shall need the next weekly candle to open below our support (1680). If the consecutive next weekly candle does not open below 1680 we are still not confirmed about the continuation of the bearish trend and there are still chances of a bullish reversal. So be patient and just wait!