XAUUSD at critical support: Gold trend to be determined

Current price is approaching a critical support zone.
There is an exact confluence of two 2.618 Fib extensions.
The Red is the downward wave, and the Blue is short term upward wave.

Where two such important and opposite ripples meet, there is often a battle.

Lets see how this plays out.

Background:
I am currently short, based on this plan

I am of the opinion that it will continue downwards as the stock markets recover and the Fed keeps raising rates.

Komentar:

So here we are, orbiting the two 2.618's like binary stars.

But the incoming downward velocity will probably break it loos of the gravitational forces of these two fibs.

Komentar:

Wow, quite a bounce off the crucial zone

helped by USD weakness on Thursday. Evaluating the move now, will post a new Idea with my thoughts.