This suggests we may see a short term pullback into the consolidation lows or into the higher time frame lows of $1639.00 and resistance. A bearish rejection at these levels could invite the current sellers an opportunity to add to their positions. Gold is below 50 SMA on daily time frame.
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We prefer to sell from this area 1639. If the resistance break at 1640 area; Gold will move up 1648/1654 area gradually. Consider the following instructions when you make a new trade on xauusd today-
- The medium term bias remains bearish.
- Broken out of the triangle formation to the downside.
- A mild correction has been posted from yesterdays low, this is seen as a retest of the breakout level.
- Resistance could prove difficult to breakdown.
- We therefore, prefer to fade into the rally with a tight stop in anticipation of a move back lower.
