A decline is likely to continue.

On the 4-hour chart, the price is testing the level of 1210.80 (23.6% correction); the ascending 38.2% fan line is an additional resistance for the price. If this resistance area is overcome, a growth would continue to 1224.90 and 1249.25. However, a likelier scenario is a price rebound and a decline to 1187.00 (38.2% correction), near a crossover with the 50.0% fan line, and 1168.00 (overlap of the 50.0% correction for the short-term trend and the 38.2% correction for the medium-term trend).

On the daily chart, the pair is trading near the level of 1200.50 (23.6% correction). A breakdown of this level would lead to a decline to 1171.80 (38.2% correction), near a crossover with the 50.0% fan line, and, possibly, to 1148.60 (overlap of the 50.0% correction for the medium-term trend and the 61.8% correction for the short-term trend) A price rebound from the level of 1200.50 could lead to a growth to 1229.00 and 1246.50.

Trading tips

Sell the pair from the level of 1187.00 with targets at 1168.00, 1148.60 and stop-loss at 1190.50.

Alternative scenario

Buy the pair if the price breaks out the level of 1210.80 with targets at 1224.90, 1249.25 and stop-loss at 1202.00.

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