FX.co ★ Trading idea for gold

Gold prices fell amid strong US unemployment data, growing investor confidence in dollar and slightly hawkish statements from the Federal Reserve.

And this morning, the rate declined further by 7,500 pips, marking the old but very interesting level 1675.

Considering this, add to the fact that there is a three-wave pattern (ABC) in the chart, where wave A represents the selling pressure last Friday and this morning, it is recommended to open short positions in the market in order to set off a 50-61.8% pull back from 1748-1757. Stop loss should be placed at 1810, while take profit should be at 1675.

This idea follows the Price Action and Stop Hunting strategies.

Good luck!