XAUUSD was unable to break above the 2070 level recently and was rejected by it to break below 2000 again.
Only a confirmed break above 2070 will lead to an extension higher and a continuation above 2100 to break above the historical high and extend higher.
Any short-term confirmed break below 2000 would lead to a bearish swing lower to 1920 again, for which we give a little more weight than an upside break above 2100.
This could be a medium-term low-risk short trade, but we reserve the right to switch to a long trade in case of a break above 2070.
You can take the short trade here with the stop loss just above 2060 as we see a higher probability of a swing reversal lower. By placing this trade your RR ratio is 1.84. In the case, you are stopped you can reverse your trade to a long trade, especially in the case of a confirmed break above 2070. The first target is 1920 but it may go beyond that to 1850.
