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

The material published on this page is produced by LiteForex and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

!-- Go to www.addthis.com/dashboard to customize your tools -->