FX.co ★ Gold's trap for buyers

Good day, dear traders! I present to your attention, a trading idea for gold.

Gold has not grown for two days in a row, bouncing off in the round level of $ 1,700 per troy ounce. The first short pulses were held on Monday during the Asian session, on the statements of Chinese officials about the "final victory over the coronavirus", which is predicted to happen this summer. As a result, longs were fixed near the round level of $ 1700.

Today though, there is a classic "buyer trap", where all traders can clearly see the support level in the area of 1650, and the resistance level at the area of Friday's low at 1640, where the main stop orders of buyers will be placed.

In order to update these two levels, I suggest working downwards during the US session.

Truthfully, this situation is a hunt for the buyers who are caught in a long trap on the slowing bullish trend of this instrument, so I suggest paying special attention to the American session when trading.