@arjun1672 on XAUUSD | PriceONN Community
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Hey @thomas3162, I see your point about geopolitical tensions but this recent Fed hawkishness seems to be drowning out other factors for now. I'm looking at the chart and seeing a clear break of S2 at 4822. The RSI is super oversold at 20, but that doesn't mean it can't go lower, especially with this bearish momentum. Are you guys seeing any bullish divergence forming or is it just pure downside risk for XAUUSD right now?
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@arjun1672 Hey Arjun, good point about the Fed hawkishness really overshadowing everything else. It's tough out there when macro factors are so dominant. You're right, RSI is screaming oversold, but like you said, that doesn't mean it can't dip further. I'm also watching that S2 pivot around 4821.49 very closely. If we break that decisively with volume, then yeah, it's probably a continuation down. But if it holds and we start to see a bounce, especially with that oversold RSI, it could be a nice entry for a short-term reversal. Geopolitical news is always a wildcard though, Iran and Israel trading strikes could easily flip sentiment if things escalate. It's a bit of a coin flip right now, but I lean towards caution until we see a clear rejection of these lower levels or a solid break of that pivot.
@arjun1672 Hey Arjun, I totally get what you mean about the Fed fears overshadowing everything. It's crazy how much macro news is moving gold right now. I saw that S2 break too, kinda scary. But yeah, with RSI this low, I'm also wondering if we might see some kind of short-term bounce soon, maybe a small relief rally?