Chart of the day

XAUUSD is retesting the broken rising wedge resistance 2070 in what seems to be a second wave of the downside five. To extend higher, we must see a confirmed break above 2070 to invalidate the downside wave count extension in the medium-term and short term.

A rejection here will confirm the downside waves extension and will lead to a test of 1922 especially in the case of a break below 2040. We need to see a clear confirmed break below 2040 for the short trade swing entry medium-term to be justified and to confirm that we will have a continuation downside.

Short trades could be opened here with a stop just above 2080. Long trades should be opened only upon a confirmed break above 2080. The instrument is making a key resistance test.