XAUUSD 4H - Levels

Update for the end of the day.

As we suggested this morning we were looking for the 1814 and 1820 levels to hold as resistance to target the short trade again into the lower levels. We gave the levels of 1810 which was hit and below that 1806-4 which was also hit and acted as a strong support. We still have a lower target as we illustrated this morning so we'll keep an eye on this for tomorrow based on the structure in the morning.

We would expect to see more of this ranging movement testing the lower support level and potentially bouncing back up again between the levels we've published. This kind of movement is expected before a breakout and you'll notice all the MAs starting to converge together. They'll get traders used to playing the range up and down until traders are confident enough to go in with larger lot sizes, this is when they've accumulated enough to move the market away. So please be careful with your lot sizes the longer this range continues.

We'll be back tomorrow with our update.

As always, trade safe.

KOG