Gold- Important levels to watch for swing traders

In yesterday's post, I mentioned that as long as the price of XAUUSD remains below the recent high, I am bearish.
Indeed, initially, the price dropped, reaching a local minimum in 2020, only to aggressively reverse and close the day back above 2030. This prompted me to close my short position at break even and adopt a wait-and-see attitude.

As I write this post, the price is approximately around yesterday's closing value, and market conditions remain uncertain.

Although I usually have a preferred scenario, at this moment, both the bullish and bearish scenarios are equally probable, and we have two reference levels to consider.

Bearish scenario: A drop below yesterday's minimum opens the door to the yearly minimum and, in extension, towards the 1980 area, which represents an important technical support.

Bullish scenario: A rise above 2040 opens the door to 2065, an important resistance level, and further towards 2080.

As long as the price remains within the 2020-2040 range, the best thing for a swing trader is to stay out of the market.