This analysis suggests that taking a short position on XAU/USD may be a good idea in the short term. The decision to do so is based on two key factors:
The price is currently at a key 4-hour resistance level of 1975.90 The swing up has been measured using a Fibonacci retracement from the last swing high on the 1-hour chart at 1927.49 to 1990, and the 61.8% retracement level on the pullback is at 1943, which is another 4-hour support/resistance level. If the price fails to break above the 4-hour resistance level, it could potentially find support at the 61.8% retracement level at 1943. However, if this support level does not hold, the price could continue to move lower towards the next support level at 1927.49.
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