XAUUSD - Potential Short on the Daily

FOREXCOM:XAUUSD   Gold Spot / U.S. Dollar
Gold is still very much in an uptrend and therefore it is possible for a further press to the upside.

We can now see that gold is forming a potential descending channel made up of lower lows and lower highs signalling a potential downside.

Technical factors to consider:
- Lower highs and lower lows
- RSI decreasing in strength

Fundamental factors to consider:
- Positive trade talks between the US and China
- Lowest unemployment rate in 50 years within the US
- Recession fears have the potential to impact this setup negatively as gold/precious metals becomes a "safe haven" for investors

Target for this setup is to catch the next wave down. If the channel is followed this should be just above the 38.20% Fibonacci retracement of around $1450. Stop loss can be placed just above the previous high on the 24th of September which was around $1537, or depending on your risk appetite.

Trade setup:
Entry @ ~$1507.50
TP @ ~$1450
SL @ ~$1538
Trade active: Entered @ $1507.43

Took partials and moved SL to entry.

Depending on risk appetite, the original SL can stay in place without moving it to entry as I had done in my previous update. This will allow the trade to mature and be more flexible within this setup through intraday price action and news events. I personally have decided to move my SL back to the original $1538 as this setup is valid until price breaks that level.

Patience, is key.

Retest confirmed.
Comment: Took more partials.
Comment: SL moved to entry.
Trade closed manually: Closed rest at $1480.
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