XAUUSD is oversold on hourly, bounces may be compelling

XAUUSD is in the bearish area as per the daily chart on the left. Furthermore, the hourly has been savaged to the downside. However, the RSI puts the hourly firmly in oversold territory. This skews the risk:reward profile as the oscillator is likely to normalise in the near term. We note that bounces may very well be targeted by shorts, especially if the NFP print gives the Fed some breathing room in terms of tapering on Friday.