Last week we discussed gold as XAUUSD approached 1912 resistance level looking to pick up long positions. On Thursday we observed a major rejection spike on the daily with the bears trying to push price lower still. Start of the new week the bulls make another attempt to break this level to push price higher.
Keep in mind it is a very volatile time in the market hence it’s important to wait for a retest of supply zones before getting into a position. An important level to note on the pair is 1973.935 which marks the highest high last week and coincides with a previous resistance zone last tested mid September 2020.
The two possible entry points on the pair are; a) a retest of the downward trendline. b) A clear break and retest of the resistance zone around 1912 with a stop loss 1ATR below previous support. My bias remains long as long as price does not break beyond the upward trendline on the daily. Remember, for early entries track price on the lower timeframes as well. Leave a comment and let us know what your thoughts are on the pair.