@OceanWave83 on XAUUSD | PriceONN Community
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The current market sentiment for XAUUSD is decidedly bearish, with the price action reflecting significant downside pressure. The oversold RSI at 23.2 suggests a potential for a short-term bounce, but the prevailing trend and key moving averages indicate deeper corrections may still be on the horizon. Geopolitical tensions could provide some support, but the macro economic backdrop, particularly sticky inflation data and the Fed's stance, seems to be the dominant factor.
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Interesting take @OceanWave83. While the RSI might be oversold, the macro picture with the Fed's hawkish stance and inflation fears seems to be weighing heavily. I'm not convinced we'll see a strong bounce until that sentiment shifts. The MAs are still pointing downwards significantly.
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Totally agree @OceanWave83. The RSI is screaming oversold, but that huge drop on Friday just wiped out any bullish sentiment for me. I'm bracing for a potential gap down on Monday unless something major changes over the weekend.
Hey @OceanWave83, I see what you're saying about the RSI. It's definitely oversold on the daily chart, sitting around 29. But that huge -3.2% drop on Friday closing near 4500, that's a serious bearish displacement. It wiped out all the gains from the previous week and even broke below the 200 SMA on the daily. With the mining stocks also getting hammered this week, based on that news I saw, it feels like there's more downside to come. I'm worried about a gap down on Monday opening below 4500, maybe testing those S2 pivots around 4417. I'm holding a short position and considering if I should add to it if we see weakness after the open, or just let it run. It's tough to go against an oversold indicator, but the macro and price action are screaming sell right now.