Gold Price Analysis: XAU/USD bears taking over below structure for 1:3 R/R prospects

• The price of gold could have played into the hands of the bears seeking a discount. 
• A 1:3 R/R 4-hour bearish swing trade was activated on the bid. 

Gold prices rallied on dollar weakness following mixed messages pertaining to the US President Donald Trump’s tweets about fiscal stimulus.  

Gold and DXY technical analysis

A bullish case for the USD has been in the making considering a number of intermarket implications and price analysis for which may be starting to come to fruition:

As for gold, in previous analysis, it was stressed the dollar was in the driver’s seat and to monitor for a 5th wave to the upside:

It was explained that a break below the 4-hour support will open the potential for a short.

Following the events of both US sessions since yesterday’s analysis:

… the price has indeed risen back to test the entry point as it was expected to do so, as illustrated here:

Outcome:

As shown in the daily and the below 4-hour charts, the price has followed the above analysis to a T.

The sell limit was strategically placed at the structure for a discount with a stop loss protecting the position above the highs. 

The target was established just ahead of lower structure for a 1:3 risk to reward.