XAU/USD is testing support
Trade idea
SELL 1316; TP 1309; SL 1319
BUY 1322; TP 1326; SL 1320
XAU/USD formed a pin bar on W1 — such candlestick usually marks a reversal to the downside. On H4, the price has already formed a lower high and is testing support line from November in the 1318 area. The decline below this support will confirm a “Double top” and send gold towards 1309 (200-period MA).
The return above 1321 is needed to open the way back up to 1326 and 1330.