Short on XAUUSD (GOLD)Price Action:
Price has failed to break range (2925 - 2891) above for 4 days new ending the week in consolidation even after NFP on Friday with the dollar being weak.
Correlation to DXY:
Last week the dollar was under attack due to fears of trump tariff wars. On DXY chart, the price is approaching the 200 EMA on weekly chart, indicating a potential bull run hence affecting gold’s price inversely.
Short Bias (High Probability):
On higher time frame price action clearly forming a bearish head and shoulder pattern after creating an all time high indicating a bearish move back down to 2840 region. Break of this level price could be potentially continue to drop to the previous all time high at a psychological level of 2780.
Long Bias (Low Probability):
If price breaks above 2950 with a full body candle close above and retesting forming a resistance to support price action then price could be rallying to create new all time highs! If this scenario plays out, we will be approaching uncharted territories forming new resistance aches support so trading with a trailing stop is recommended for capital protection.