XAUUSD
The price of gold is currently exhibiting bearish divergence on both the 2 and 4-hour time frames, indicating a potential downward trend. Furthermore, the price has recently broken below the micro level of structure, which may suggest a shift in the market's sentiment. Currently, the price is retesting the highs, which could either result in a continuation of the upward trend or a failure to create a higher high. If the latter occurs, it could lead to the breaking of another structural level in gold, which may indicate a further decline in price.
Alternative Scenario:
In case the price reaches the previous high, it's advisable to wait for a bullish continuation pattern to emerge before searching for potential buying opportunities. This approach can help traders increase the likelihood of a successful trade. By patiently waiting for the right signals, we can minimize the risks and improve our chances of earning profits with this setup.