A fall continuation is likely.

On the 4-hour chart, the price is testing the level of 1086.59 (38.2% correction), near its crossover with the 38.2% arc. Its breakdown would allow the price to fall to 1081.80 (crossover with 61.8% fan line), 1079.72 (50% correction) and 1072.84 (61.8% correction). If the price cannot overcome the level of 1086.59, a growth along the 38.2% arc towards 1090.30 and 1095.05 (23.6% correction) can start.

On the daily chart, the price is falling along the 50% fan line towards 1082.80 (23.6% correction). A price consolidation below the range of 1082.80-1078.00 could lead to a fall in the medium-term towards 1068.00 and 1051.10. Otherwise, the next Bullish target is going to be the level of 1101.95 (38.2% correction).

Trading tips

Short positions can be opened below the level of 1086.59 with targets at 1079.72, 1072.84 and stop-loss at 1088.00.

Alternative scenario

Long positions can be opened after the price rebound from the level of 1086.59 with targets at 1090.30, 1095.05 and stop-loss at 1085.00.

XAU/USD: Fibonacci analysis

XAU/USD: Fibonacci analysis

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

Follow us in social networks!
Live Chat
Leave feedback