I hope you have had a great week so far as we are now over halfway through the trading week.
Tomorrow is the last day of the Trading Month and therefore this means that we will be able to take into account the Monthly candle close from 10:00pm tomorrow evening.
In this Article i will be taking a look over gold which we have seen a decline since price rejected off the 1340 area.
Taking a look at the chart below we can see that the market has been printing higher highs and higher lows and moving with nice flow. Price has respected our trendline several times where price today has returned to.
From this area we have two options for price to reject or break below.
So if we now go down to the 4 Hour timeframe below we can see price is very close to our ascending trendline which is also close to our 1316.00 support.
As mentioned above there are two options for price, either to reject like we have seen previously or show a break of the trendline to the downside.
If we see price rejected to the upside, we will look for price to break back above the 1325.00 resistance before taking a long opportunity.
However if price breaks the trendline we would then want to see price below the support of 1316 before taking a short position down to the area of 1308.50.
Time to be patient and wait and see how price reacts at the trendline.
James at Technical FX89