Gold - short term weakness to prepare for higher targets
On the daily chart, Gold (XAUUSD) prices look to retest the support level around 1680 for a final confirmation before rallying up to challenge the swing high at 1750. The catalyst for a spike in Gold could be the US-China trade war, on top of the Coronavirus pandemic.
On H1 timeframe, a test of the resistance zone formed by the day high from previous day and the non-regular trading hours (RTH) high could form a short entry for a quick swing trade to the downside for XAUUSD.
Below are the key parameters for Gold potential short setup for trading session on 6 May 2020, with a potential reward to risk ratio of 2.
Entry: short limit order at 1710
Stop loss: 1720
Take profit: 1690
On H1 timeframe, a test of the resistance zone formed by the day high from previous day and the non-regular trading hours (RTH) high could form a short entry for a quick swing trade to the downside for XAUUSD.
Below are the key parameters for Gold potential short setup for trading session on 6 May 2020, with a potential reward to risk ratio of 2.
Entry: short limit order at 1710
Stop loss: 1720
Take profit: 1690
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