XAUUSD - Shorts fueled by stop losses
As we all know the fundamentals behind safe havens, proved its market maker theory.
Continuous buyers have shifted to its 7 Year high of 1689.60.
Institutionally speaking, why would we want to carry on buying at such a high price?
As majority of traders continue their long positions, this provides an easy capitulation for ( amidst the economic outbreak of the COVID-2019 Coronavirus ).
The virus seems to be causing ripples through the global economy, sensibly causing hysteria of outbreak cases. All much needed reason for a short position as bull markets tend to end on hysteria.
Strong of 1595.00 to 1534.00 ( EXHIBIT A ) could prove fatal to traders accounts as they then look for shorts.
This zone could prove difficult price to pass this zone. In confluence with the overall economic fundamentals this zone could potentially act as the much needed support for the yellow metal for the upside move to 1710.00 in the next 3 MONTHS to come.