Pre-Requisite Reading: GLD, The Bullish Case for Gold
We are currently positioned short in XAUUSD from 1259.4 level, however this pair did not react the way we would have preferred around 1233.00 level. A strong bearish confirmation would have been the breach of the neckline (red dashed trendline), however that level was apparently rejected and what followed immediately was a strong rally leading XAUUSD to retest the upper trendline of the channel in the daily chart.
We are not ruling out the bearish scenario just yet because the wave count is in favor of the breach of the lower trendline down to 38.2% retracement level. However, ...Read More