It’s the top of the week, traders! And it looks like we may see a nice setup for XAU/USD. Let’s get right into the analysis:
We will be entering this trade, for a BUY, only if we see a clean retracement, that is, a nice streak of red candles (1H timeframe), going all the way back to the EP:
Take Profit (TP): ~1831.448
Entry Point (EP): ~1819.684
Stop Loss (SL): ~1810.620
✔️ Breakout @ ~1819.684
✔️ Retracement @ ~1834.051
✔️ EMA (50) @ under the candlesticks, between the EP & SL.
✔️ EMA (200) @ under the EMA (50).
If a big green candle forms (on both the 1H and 4H timeframes), before price hits the EP, this setup is no longer valid.
For about 1 month, we’ve had a nice, solid uptrend. This is a good sign that it’ll continue rising; good evidence, supporting our potential decision to BUY.
This is the fourth time, within the past couple of months, that we see price resisting the ~1831.448 zone. This is good evidence, supporting our prediction that price may retrace to the nearest support zone (~1819.684).
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