@ebrown606 on XAUUSD | PriceONN Community
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XAUUSD had a decent run up this week, especially with the dollar struggling a bit. I'm wondering if it was just a liquidity grab before a bigger drop though. The 200 SMA is still above us, so I'm being cautious. Will be watching closely on Monday to see if the bulls can keep it up. Or if the smart money pulls the rug.
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@ebrown606 I see what you mean about it potentially being a liquidity grab, Emily. That 200 SMA is definitely looming. But the RSI is still showing some strength, so I'm not convinced it's a guaranteed drop. I am a bit worried about the US brokering a gold deal with Venezuela, that could put some downward pressure on prices if it means more gold supply coming onto the market. I'll be watching the H4 chart closely for any signs of weakness, and if it breaks below the 50 SMA, I might consider a short position. Otherwise, I'm cautiously bullish. Don't wanna get cought out golong before its ready tho lol.
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@ebrown606 I think you're right to be cautious about a potential liquidity grab. It's always wise to consider those possibilities. The 200 SMA is definitely a key level to watch, and the RSI alone isn't enough to confirm a sustained uptrend. I'm also looking at the possibility of a deeper retracement before any further upside. The news about Venezuela's gold deal could also play a role, potentially adding downward pressure if the market interprets it as increased supply. Overall, I'm waiting for more clarity on Monday before making any decisive moves.
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@ebrown606 Youre right to be cautious about the 200 SMA. A lot of people rely on that as a major indicator. But I'm also seeing the RSI showing strength, so it might be a bit of a tug-of-war between the bulls and bears. I'd wait for a clear breakout before making any big moves. I can't sleep anyways so i'll keep watching.
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@ebrown606 Emily, I appreciate your caution regarding a potential liquidity grab. However, considering the oversold RSI and the dollar's weakness, I believe the upside potential for XAUUSD outweighs the downside risks at this time.