XAUUSD 1H - Levels

Gold seems to be forming a bit of a H&S on the hourly which suggests that there is a possibility for this to go down at some point. At the moment we're not short on Gold and won't be shorting it to the lower support levels. Instead, if we do go down towards the lower levels we will test the long trade, based on strong support targeting the higher levels of around 1825-30. The 1825-30 range is where we want to start looking for shorts as long as there is a good resistance formed up there. As long as gold stays above the 1795 level its not a good idea to short it in our opinion. The 3 hourly chart is also suggesting a decline but a minimal one as there are more indications of the price going higher right now. This can all change if the US opening wants to create a flush again like they did yesterday. If this is the case then they should push it up first before bringing it down.

In summary. We've drawn in the range we think it will play in for the coming sessions. If this goes down first we're looking to take a long position from that 1785 level. If this goes up first we're looking to take a short from the 1825-20 levels.

We'll be back to normal from next week sharing our trade ideas and short term targets.

As always, trade safe.

KOG