A price reverse and a fall are possible.

On the 4-hour chart, the price is testing the level of 1217.00 (23.6% correction), a breakout of which could lead to a growth towards 1236.40, and possibly 1249.25, near its crossover with the ascending 50% fan line. In case of the price reverse and a breakdown of the 61.8% fan line and the level of 1196.50 (38.2% correction), the fall can continue towards 1180.50 (50% correction) and 1164.00 (61.8% correction).

On the daily chart, critical for Bears is the level of 1200.50. Its breakdown could lead to a fall towards 1171.80 (38.2% correction). A growth towards 1246.50 is possible if the price reaches the level of 1230.75.

Trading tips

Sell the pair from the level of 1196.50 with targets at 1180.50, 1164.00 and stop-loss at 1205.00.

Alternative scenario

Buy the pair above the level of 1217.00 with targets at 1236.40, 1249.25 and stop-loss at 1207.00.

XAU/USD: Fibonacci analysis

XAU/USD: Fibonacci analysis

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