XAU is in broad bear channel and currently it is forming what I believe is a bear flag.
Based on price behavior a short entry around 2030-2040 is probable.
We need to consider that price pulled back to Trading Range (A 100% pullback) and an upside swing is also probable.
XAU is in Trading Range after a swing (Bull Leg) to upside. It has been now for 40 bars in Trading Range (2010$-2060$).
It will Break Out of this Trading Range and is going to swing for a Measured Move.
Probability of breakout and a swing to upside or downside is now 50/50, so we need to wait for breakout of Trading Range.
XAU is in trading range inside of bear channel.
Price is in breakout mode, however price is in bear channel and with a good signal bar we can swing a short position.
Possible Sell Zone: 2038-2045
