Chart of the day

XAUUSD is reaching the uptrend channel support of 1900 in a falling wedge. A bounce higher from here is opening an upside swing to 2050 again.

This is still viewed as completing the medium-term fourth wave pullback of the five waves upside. A break below 1900 is now required for a downside reversal and an invalidation of the possible upside reversal which will mark the five waves upside over.

Long trade, you can open here with a stop loss just below 1900. You can only open short trade entries in the case of a confirmed break below 1900 if you got stopped out. We favor the long trade entries as we expect an upside extension from this strong support near the uptrend channel support line and a falling wedge.