Short gold trading
XAU/USD trades in the green for a fourth consecutive day, but the bullish potential seems limited. The pair is meeting sellers around the 38.2% Fibonacci retracement of the $1,981.98/$1,885.25 slide at $1,921.86. The daily chart shows that Gold is battling to overcome a bearish 20 Simple Moving Average (SMA), which remains far below the 100 SMA. Finally, technical indicators have turned flat right below their midlines, reflecting decreased buying interest.
For the near term, and according to the 4-hour chart, XAU/USD is also losing bullish strength. Still, the pair keeps developing above its 20 and 100 SMAs, with the shorter one gaining upward traction. Technical indicators, on the contrary, have retreated from their recent highs and head south with uneven strength within positive levels.I expect the red scenario shown in the chart to occur in the medium term.
For the near term, and according to the 4-hour chart, XAU/USD is also losing bullish strength. Still, the pair keeps developing above its 20 and 100 SMAs, with the shorter one gaining upward traction. Technical indicators, on the contrary, have retreated from their recent highs and head south with uneven strength within positive levels.I expect the red scenario shown in the chart to occur in the medium term.
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