Short

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XAUUSD | Perspective for the new week | Follow-up details

Gold plunges to a new two-year low below $1,640 during the course of last week's trading session to set the tone for the risk of further decline in price. As the Greenback continue to soar, I want to see how price action is going to relate to the current structure identified on the 4H timeframe before making an informed decision next week.

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Note

Selling pressure appears to be the order so far as I am still looking out for a convincing structure to get set for a selling opportunity. Is there going to be a move into the $1,660 before a confirmation happens or will there be a breakdown of $1,635 to continue to the downside?

Good morning

Trade active

Since the beginning of the week; sellers have continued to reject the $1,645 zone to insinuate a bearish momentum for this week. So, as the price continues to oscillate below the $1,645 area, I will be looking to sell the Gold.

good morning

Trade active

Below the $1,640 zone remains a zone to sell.

Trade active

Bearish momentum appears to be stalling; moving stop-loss to break even.

Trade active

Price appears to have broken below the previous low @ $1,625 area to continue to move in our direction. Moving stop-loss

Good morning

Note

After being stopped with roughly $1,000pips from the sell position; the market structure appears to be shifting into bullish. Now that we are anticipating Powell's speech in 2.5hours - are we going to be seeing a reversal set-up where the $1,640 level becomes the neckline that will guide bullish expectations? Remember, there is a selling strength around the $1,640 area - which as been rejected since the beginning of the week. So a significant breakout of this level might negate all selling pressure...
let's see what happpens.

Trade active

Following the breakout of the $1,640 yesterday, I want to see if there are going to be multiple rejections of the $1,640 (reversal pattern) and if that happens, I will be buying but if a breakdown retest of this neckline happens, I will be anticipating a sell move.

Good morning

Note

I just closed a 1,300pips profit as price action hits my TP target.

I shared this set-up during the live session today on my youtub channel

Update coming up soon.

Trade active

Now, there appears to be an equilibrium in the current structure as the key level at the $1,640 area might be serving as a neckline for both a bearish and bullish momentum drive. However, with price action currently oscillating below the $1,660 area which lines up with the bearish trendline identified at the higher time and coupled with the appearance of a double top look-a-like; the possibility of a second wave of bearish momentum becomes feasible. So, as long as the price does not break above the $1,660 mark I will be selling the Gold.

Trade active

Breakout/retest of the $1,660 appears to confirm market participants' willingness to buy the Gold.

Good morning

Trade active

It's becoming interesting with the current market structure as there is a possibility that we might be having a transition into a head and shoulder pattern with the $1.660 level becoming the neckline. I have moved my stop loss to the entry zone for my buy position and if a breakdown/retest of the $1,660 happens, I will be planning to sell Gold.

Trade closed manually

Break-even from my position as price hits the entry zone.

Good night and happy weekend

darcsherry

Trade smart. Trade consciously

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