Chart of the day

XAUUSD is testing the support of the descending wedge 1900 level which is usually a bullish price action formation.

A break above 1930 is required to confirm that we will begin the fifth wave higher and the fourth wave is finished. A break below 1890 is required for the invalidation of the upside extension. If we do not see a break above 1930 we can see another test of 1900 before eventual reversal and a new test of 1930.

Short trades, you should open only upon a confirmed break below 1890. Long trades you can open here with the stop loss below 1890 or upon the confirmed break above 1930 if you are a more conservative trader. Be patient and careful both intraday and long-term as this is a wedge that is narrowing for a break higher.