A fall could continue.

As it can be seen on the 4-hour chart, the price was falling along the 61.8% arc for two weeks. On Thursday, it obstructed the 61.8% fan line and tried to correct up. It currently reached the 61.8% arc again and is likely to resume the fall toward the level of 1058.80 (23.6% correction). Its breakdown would allow the pair to fall to 1050.50. In case of a price rebound from the level of 1058.80, around its crossover with the arc and fan line, the pair could grow towards 1063.95 (38.2% correction) and 1068.05 (50% correction).

On the daily chart, the price is heading to the level of 1051.10. However, in case of a price reverse and a breakout of the level of 1068.05, in the medium-term the pair could grow towards 1082.80 (23.6% correction).

Trading tips

Short positions can be opened from current prices with targets at 1058.80, 1050.50 and stop-loss at 1063.00.

Alternative scenario

Pending buy orders can be placed at the level of 1058.80 with targets at 1063.95, 1068.05 and stop-loss at 1055.00.

XAU/USD: Fibonacci analysis

XAU/USD: Fibonacci analysis




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