XAUUSD has reached my key level of 1795-1815. This key area has been seen to be both a strong supply and demand level. Due to price being below this area at the moment, my overall bias is bearish until proven otherwise. Whilst we are in a strong monthly uptrend, I am of the opinion that this is some form of liquidity grab before price pushes further down. Fundamentally I can see the US Dollar gaining some further upside due to the economy starting to reopen after the global pandemic. The US had some good retail spending reports recently, so hopefully a continuation of positive consumer spending will boost the US Dollar.
A further confluence is that the US10Y is at a recent key level, so we can maybe expect some upside off of it. This in turn will see Gold retreating to lower levels.
I would also like to see a retail sentiment reports turn more bullish than bearish before entering. Remember 70-80% of traders lose, so why would I want to trade with the majority?
Overall, I would like to see price rejecting this key level STRONGLY. I won't be entering until it is apparent to do so.
A further confluence is that the US10Y is at a recent key level, so we can maybe expect some upside off of it. This in turn will see Gold retreating to lower levels.
I would also like to see a retail sentiment reports turn more bullish than bearish before entering. Remember 70-80% of traders lose, so why would I want to trade with the majority?
Overall, I would like to see price rejecting this key level STRONGLY. I won't be entering until it is apparent to do so.