@danielhall26 on XAUUSD | PriceONN Community
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Watching the price action on XAUUSD closely here. The sharp drop below 4800, as mentioned in some of the news, looks like it could be a setup for a bear trap if we're not careful. We've seen significant selling pressure, pushing RSI into deep oversold territory on the H1 and even H4 charts. The news about the Iran ceasefire expiring adds to the geopolitical uncertainty, which typically supports gold, yet we're seeing the opposite. This divergence between the news sentiment and price action is a red flag. It's possible that the market has already priced in some of this negativity, or that the dollar strength is overwhelming safe-haven demand for now. I'm wary of chasing this down too hard without seeing some consolidation or clear reversal signals. A quick move back above the 4700 level, especially the 50 SMA around 4796, could signal a short-covering rally or a fakeout lower. Traders who are shorting aggressively right now might find themselves caught if gold reverses sharply from these oversold levels.