|XAU/USD||Short and long setup|
EU did come up to resistance and is seeing some pressure, but it is now coming up for a retest. If price makes a higher high, the 200 SMA on 4H chart may be the next level of resistance. However, if the 4H candles can't get passed recent highs around 1.17500, short sentiment stands. Looking at the daily chart, price has clean support around 1.14170s which looks like a potential TP point if the daily candles don't break above resistance in the next few days.
Gold looks exactly the same as EU, so I wanted to include that short setup we see on the daily at 1900-1910. It looks like price won't maintain price above 1900 for today and that more downside is yet to come. As the market remains under pressure, so does this metal. That level could be something to consider as investors like price breaking 1900 again. If gold can hit 1900 and close above, I see more upside. The US market's volatility will reflect in gold as well, so we are expecting hard price swings in either direction.
After a hard runup, the 200 SMA on the 4H showed solid resistance. At some point, the market had to take a breather after talks of another stimulus bill seems more possible. This recent rally on the 4H may be a fake-out for the bulls as market confidence is still low. I remain bearish as long as price stays under the 200 DMA and expect further moves down as the market is priced close to where it opened in last night's futures.
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