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




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