XAUUSD: Big correction may be underway.

FX_IDC:XAUUSD   Gold Spot / U.S. Dollar
This is a technical overview that doesn't include the fundamental aspect of the upcoming U.S. stimulus package vote. While that event can have a largely unexpected outcome, we can formulate a careful medium term strategy based on what technical levels Gold brakes.

The 4H chart has just turned bearish ( RSI = 42.679, MACD = 5.420, ADX = 37.414), after being overbought last week. This is because the price just made contact with the 4H MA50 (blue trend-line) for the first time since July 17th. As seen on the chart, the MACD and RSI indicators are forming a similar pattern to that of the mid-March big decline. Of course that had to do with panic selling related to the COVID outbreak and an asset-wide liquidation effect, but we have to keep an eye on certain levels, and if they break, start selling.

Since the 4H MA50 broke, the obvious target is the 4H MA200. The July 28th low is set at 1,905, so depending on the stimulus news and if today's 1D candle closes in red, that will be our target.

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