The below is the daily chart of the XAUUSD. Price has retraced to a confluence of resistance as defined by:
1.The 61.8% Fibonacci retracement from the impulse move that began at point 1.
2.The 76.4% Fibonacci retracement from the impulse move that began at point 2.
3.The price resistance near 1,305 level (red shaded horizontal).
If price reacts off of this level it may be the start of the next impulse leg down. However, for the swing to be meaningful it is important for the RSI(9) to move below the 50 level, which is the bearish side of the indicator.
Past performance is not an indicator of future results.
CHART SOURCE: FXCM MARKETSCOPE 2.0
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