xauusd: Wait for the lows to go long!
Updated
On Wednesday, spot gold fell for the third consecutive trading day to a three-week low. The decline in the U.S. market deepened, falling below the $1,950 mark, reaching a low of around $1,947, a new low in the past three weeks.
Gold is currently falling below 1950 and continues to consolidate near 1950.
Near 1940 is a top-bottom transition position. If gold falls below 1940, it will fall sharply.
But if it does not fall below 1940, then there will continue to be a wide range of shocks from 1940-80.
Therefore, you must not chase short here.
We can see that there is a head and shoulders top pattern here in 4 hours, and 1940 is the bottom of this head and shoulders top.
When the 1940 support level is stabilized, a short-term rebound can indeed be achieved.
It happens to be consistent with the previous daily chart analysis, so here I suggest that you can wait for the entry near 1940 to go long, and defend the stop loss below 1935. The upper target is around 1960.
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