I am still stuck between 2 scenarios for this pair.
In this scenario, the pair seems to be trading between 2 key levels of support and resistance and has started forming an inverse head and shoulder pattern.
once we breakout out of the neckline then this scenario will be valid and I then be targeting the major resistance that lies ahead.
Previously i had identified a short opportunity on this pair while it approaching the end of its bullish run.
After reaching target I have found areas which show signs of bearish continuation and have found ways to reenter into this bearish move.
On the chart I am posting now, you will realize that the pair has created a series of bearish flags and another one...
If the dxy is able to hold the resistance level i have indicated and begins its push up to the 100.00 region then XAUUSD will also mirror that movement by providing us with good short opportunities all the way to the region of support indicated in the chart.
Waiting for another higher low to form before the breakout of the next area of resistance.
3 areas to add buy positions:
1. at the lower low
2 . Just after the break of resistance
3. After the retest of resistance which will form as the next higher low.