Risk/Reward:
TP 1 - 3:1
TP 2 - 10:1
Bias: SHORTS
Confluences for this trade is as follows:
Macro
Daily - Double top market structure formation on this timeframe, rejecting a major daily key level/psychological level at price point 12000.0
Daily - Yesterday's daily candle closed below another daily key level/key daily resistance at price point 11600.0
4H - Overall bearish market condition (downtrend) on this timeframe
4H - Market structural retest off of previous structural lows (pointed out in RED arrows)
4H - Creation of a new 'lower high' structure on this timeframe one hour into US session open. An indication of a continuation of said bearish market condition (downtrend)
Micro
15m - This week's Monday's US session zone used as entry zone
5m - Bearish candle closure, rejecting the said entry zone, used as entry point
Remarks -
There was a Major USD news event (US GDP QoQ) around the time that the entry was placed. Although I wasn't too focused on entering the trade against the USD news, it ended up being POSITIVE for the currency (USD).. Thus giving XAUUSD (gold) NEGATIVE direction into the market (bearish). As a result, further increasing success probability for this trade.
Awaiting for another USD news release later on this day (US JOLTS Job Openings) @ 1000 EST, this will ultimately decide whether to close out the trade entirely OR continue to hold..
If USD news comes out NEGATIVE then I will be at risk of being stopped out of the trade if I continue to hold. So closing out entirely will be the best course of action for this scenario.
BUT if USD news continues to be POSITIVE for USD, THEN I will have more confidence into holding said trade...