Such a scenario is likely to happen.
The reason is high inflation and recession.
It is not possible to suppress inflation with interest rates in a short time, this is a process.
In the near future, we may see sharp interest rate hikes on the ECB side as well.
This process seems to take a long time because inflation figures are at the peak of the last 40 years.
We shared more detailed macroeconomic comments in the previous posts, you can take a look.
*Note: The reason why we examine XAU/EUR is to have a better idea of the state of gold. Before buying an instrument, it will give you more insight into its charts with other currency pairs.
When we examine the price chart on a monthly basis,
The price is very close to the upper channel line, which is a major resistance for the price.
When we interpret the price according to the elliot wave pattern. It corrects the previous rise.
I think we are now in B bullish on this corrective move.
After low as low as $1650 last June, it closed the month with a strong doji candle formation.
*In candlestick formations, if the price holds above 1/3 of the needle, an increase is expected.
For this reason, pullbacks to $1650 levels can be considered as buying opportunities.
💥When we examine the price chart on a weekly basis,
When the price broke the downtrend line upwards, it got a strong downward reaction from the $1760 resistance.(pls resacrch pullback-back test)
This week is selling hard.1675-1703 support levels.
The price could retrace to the 0.382 fibonachi level.
I expect an upward reaction from these regions.
The price appears to have completed its descending wedge correction.
The reason is high inflation and recession.
It is not possible to suppress inflation with interest rates in a short time, this is a process.
In the near future, we may see sharp interest rate hikes on the ECB side as well.
This process seems to take a long time because inflation figures are at the peak of the last 40 years.
We shared more detailed macroeconomic comments in the previous posts, you can take a look.
*Note: The reason why we examine XAU/EUR is to have a better idea of the state of gold. Before buying an instrument, it will give you more insight into its charts with other currency pairs.
When we examine the price chart on a monthly basis,
The price is very close to the upper channel line, which is a major resistance for the price.
When we interpret the price according to the elliot wave pattern. It corrects the previous rise.
I think we are now in B bullish on this corrective move.
After low as low as $1650 last June, it closed the month with a strong doji candle formation.
*In candlestick formations, if the price holds above 1/3 of the needle, an increase is expected.
For this reason, pullbacks to $1650 levels can be considered as buying opportunities.
💥When we examine the price chart on a weekly basis,
When the price broke the downtrend line upwards, it got a strong downward reaction from the $1760 resistance.(pls resacrch pullback-back test)
This week is selling hard.1675-1703 support levels.
The price could retrace to the 0.382 fibonachi level.
I expect an upward reaction from these regions.
The price appears to have completed its descending wedge correction.