Gold - Cup & Handle + Falling Three Method
As proclaimed in my previous idea (see related ideas) that we have come across a cup and handle which was confirmed by a clear break low in form of a huge daily bearish engulfing. Looking at the end of the Friday candle and the weekly closed near the weekly low price, we now have a further confirmation to sell xauusd through this "Falling three method" candlestick pattern. We are looking for a further drop to the target zone of the cup and handle that extends from 1709-1720. We can probably expect a correction or possible reversal from that price.
Should the price pierce straight through the target zone 1, we can be expecting it to reach the yearly low near 1680, for further break low towards lower levels we need that 1660-1680 zone broken. Further evidence:
1- DXY on the brink breaking high following the bullish flag (AB=CD) after breaking out of a falling wedge accumulation pattern
2- We just completed an inverted cup and handle pattern on Gold and expecting a further break low towards the base targets of the pattern
3- The month has not finished yet and we might expect the price to be retracted to 78.6% monthly fibo retracement level at 1712 or 1728 (0.618 fibo) at the very least. We actually need this 0.618 broken to extend further to 0.786!
4- As Powell claimed to counter inflation and box it under 2%, and they intend to increase the interest rates further as well to do so, we are looking at a stronger USD than now. This is the actual trigger for the unusually large hammer on DXY that we saw on Friday
Should the price pierce straight through the target zone 1, we can be expecting it to reach the yearly low near 1680, for further break low towards lower levels we need that 1660-1680 zone broken. Further evidence:
1- DXY on the brink breaking high following the bullish flag (AB=CD) after breaking out of a falling wedge accumulation pattern
2- We just completed an inverted cup and handle pattern on Gold and expecting a further break low towards the base targets of the pattern
3- The month has not finished yet and we might expect the price to be retracted to 78.6% monthly fibo retracement level at 1712 or 1728 (0.618 fibo) at the very least. We actually need this 0.618 broken to extend further to 0.786!
4- As Powell claimed to counter inflation and box it under 2%, and they intend to increase the interest rates further as well to do so, we are looking at a stronger USD than now. This is the actual trigger for the unusually large hammer on DXY that we saw on Friday
Comment:
1728 broken
Trade closed: target reached
