Gold to Move Sideway until Unemployment Claims&Fed's TestimonialXAUUSD is currently forming a Descending Triangle Price Pattern in 4h timeframe. The price has reached a lower low last week after it has broken a strong demand zone around 1940 . However, the bulls re-appear and push the price back up to the significant supply zone near EMA 200-period in 4h timeframe at 1965 area, which was a great entry point to start accumulate short/sell positions.
In addition to the strong supply zone at 200-period EMA, this zone also clusters with the downtrend line of the Descending Triangle Formation that signifies higher possibility of a re-test getting rejected.
As statistics of Descending Triangle Price Pattern suggests, it would be more favorable for the bears to plan to short/sell:
- Entry: Accumulate shorts near the downtrend line up until 200-period EMA on 4h timeframe
- Stop loss: if the candlestick in 4h closes above 200-period EMA
- TP1: at the previous support zone at 1940
- TP2: At 1900
Alternative Plan: If the price does not re-test the downtrend line or 200-period EMA, follow short after the candle closes below the 1940 zone
Note: The descending triangle price pattern suggests more probability of bearish momentum being successful but does not mean it will always follow statistics, ensure that risk management plans are always in place when trading. Don't forget to stop loss and manage your order in accordance with the available margin
