After a strong decline price is at extreme levels. Now price is testing a strong structure.
RSI is extremely oversold and MACD also, this is called "extreme divergence". Price should make a correction to release this divergence very soon.
Looking at price history we had a rally at this levels.
I saw this scenario many times. News in this case act as catalyst to release the divergence. Last days we had this scenario on AUDNZD and EURGBP.
This potential trade is RISKY because the reaction to the news is unexpected. I rely only on my own experience observing price at this levels and before the news.
Best regards.
Comments
SS96
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Crashes happen from oversold conditions!
FullTimeTrader
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Hello, thanks for sharing your view. The NFP news could clarify this setup, we need just to wait. Regards.
AndiWilly2nd
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Thank you for your sharing. It's good to learn from other experience.
LearningForex
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I too am long from 1106..my SL is at 1093.. Thanks for your analysis
BLKS
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I agree but i would enter long at 1086.50.
BLKS
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This is my just my idea that i don't think gold will continue going down. But other idea might be valid too.
Elliottician_SamRoy
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These are now my Main counts:
InsideMarket
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Hello, traders!
So far my analysis is 'paying off'. I am sure it can be use at your best interest!
KayJay
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How can wave 4 has overlapped wave 1 in your wave C as it invalidates the count as wave c can be an impulse or ending diagonal only
InsideMarket
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I am assuming it is an ending diagonal of a 'C' wave of a ZigZag of a 'X' wave.