This suggests we may see a short term pullback into the consolidation lows or into the higher time frame lows of $1678.00 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 1675. If the resistance break at 1678 area; Gold will move up 1700/1712 area gradually. Consider the following instructions when you make a new trade on xauusd today-
- The medium term bias remains bearish.
- A bearish Head and Shoulders has formed.
- We look for losses to be extended today.
- We would prefer to see a break of initial support at 1661.00 before setting shorts.
