A very risky trade, but if I see a consolidation at this level or lot of wicks I will jump in a long position. Basically the daily 50EMA is laying exactly at this strong level of S/R so we might see a reaction from it. This setup is entirely dependent on the following 4H or daily candles.
Comment:
Gold is kinda holding the ground, so right now an aggressive entry can be made, but I prefer to see a bit more of consolidation at this level so the price can break the minor DTL and maybe 1H 50 EMA. That way it can confirm the power of the zone and a much more safe entry can be made then.
Trade active:
What a wild night, didn't even had time to update earlier, I was busy monitoring all my setups... So Gold did almost exactly what I anticipated, except that DXY did crazy moves for about 1 hour :D. Anyway, I think there is potential for this setup to happen and price already gave 4-5 opportunities for perfect entry, as shown on the chart below.
Comment:
Guys, I think we might see a bearish continuation on gold after seeing this monstrous bearish engulfing candle, If the price makes a clear break of the support, I will look for any correction to sell gold