We've been watching XAUUSD very closely the last couple of weeks. Until now there was nothing that could stop the price from dropping, until we caught this channel. If the channel support holds, we can expect the multiyear downtrend to be tested again.
According to us this precious is trading in a confirmed weekly uptrend channel, within we can see the price is rejected multiple times to head lower. Having that said, the time for a correction on the dollar has come too. That will make this an interesting move to catch. If you want to take a trade on this weekly channel, the execution should be done not lower than the 4H timeframe. And because this is a clear countertrade, we advice not to go below the daily timeframe.
If you don't mind taking risks, longing here could pay off for you, and when it drops lower you refill your tank. We believe 1250 will be a nice round level to pay close attention to.
@Valesco_Trading_Group, Thank you... a dip to 1235.75 is possible..I would just add another position at that price that way you can dollar cost avg your entry