Yesterday’s chart on XAUUSD

Gold have done bearish scenario where the price have broke below $1693.69 and touched near $1670.00. Now is located inside downtrend channel that was broken on May 29th.

Strong bullish Pinbar on the strong support line shows a lot of bulls power. It is candle formed because of sellers getting out and buyers ready to push the price back up.

This level acted as a strong support area in the past so it was expected to happen again.

Outlook for XAUUSD:

While the price is below $1693.69 we could see price staying down until breaks above. Until the price is below we should watch for bearish price action signals.

The XAUUSD chart. Bullish Scenario:

Bulls need to bring the price above $1693.69 if the want to move higher. Now we have Pinbar that can be traded with take profit target near $1693.69. Stop loss should be below Pinbar low which is below $1670.00.

The XAUUSD chart. Bearish Scenario:

We are now in bears territory, and we should watch for the bearish price action signals. First could form around $1693.69 level. If that happens we could enter into sell and set stop loss around $1700.00 with profit target at $1681.58 and second target at $1670.00.

The market is not easily predictable and we need to prepare our self for bullish or bearish scenario. Risk management is crucial in Forex trading so play safe and set stop loss.