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.
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.