XAU/USD long or short? Lets see...
Gold is in heavy consolidation on the 4hr and 1hr chart.. from a monthly look, price has broken a resistance zone, retested it and pushed higher into the 1500 price region, now nearing a previous monthly support level that held from 2010-2013. Sticking to the 1hr chart for now, if price breaks the resistance zone around 1510 and retests it with a solid closure above then I'm entering the buy to go long and take profit around 1560. If price pushes down and breaks the bottom highlighted support zone, retests it, then I'm entering the sell to short it and hopefully catch a massive sell off that could unfold, if that's the case then stop loss will be set into minimal profit and I'll just let it ride. I'm personally favoring the sell because I don't see gold breaking the next zone on the monthly time frame to push higher, sitting back and awaiting price action though, the setup is in place. Patients and risk management above all.
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