Fridays are not particular days for me to trade and I will only be executing if enough confluence and confirmation is shown. There is medium volatility data releases for the USD seen today so price can either retrace to our favoured regions of 61.8/78.6% Fibonacci level for the most high probability trade or it may break straight through the weekly key hitting take profit. If this trade consolidates, I will put it on hold till next week to see clearer price action and market direction. I have a current long running, counter trend trading which isn't always advised , however looking at the DXY, it appears we can see a nice bullish move occur for Gold.
Looking back on the previous Gold article released, our upside take profit was reached as well as the reversal was caught as anticipated. This created the right shoulder, completing the Head & Shoulder pattern. This was also the 2nd/3rd touch off the trend line on the descending trend line .
So after seeing a lower low created after the stead bull run, we had the lower high confirming break of structure. I will be looking for a retracement to the 1310 price region however we may see a shorter retracement to 1304 where we see minor support and the 38.2 Fibonacci so I will be watching for candle stick patterns that indicate a reversal around these two regions. We have also broken the ascending trend line so I anticipate a retest of either this ascending trend line or the 3rd touch and retest of the descending trend line before seeing possible downside potential.
As always, use correct risk management as per account size and manage your money properly. Have a great weekend and hope everyone had a good & profitable trading week
Looking back on the previous Gold article released, our upside take profit was reached as well as the reversal was caught as anticipated. This created the right shoulder, completing the Head & Shoulder pattern. This was also the 2nd/3rd touch off the trend line on the descending trend line .
So after seeing a lower low created after the stead bull run, we had the lower high confirming break of structure. I will be looking for a retracement to the 1310 price region however we may see a shorter retracement to 1304 where we see minor support and the 38.2 Fibonacci so I will be watching for candle stick patterns that indicate a reversal around these two regions. We have also broken the ascending trend line so I anticipate a retest of either this ascending trend line or the 3rd touch and retest of the descending trend line before seeing possible downside potential.
As always, use correct risk management as per account size and manage your money properly. Have a great weekend and hope everyone had a good & profitable trading week