Gold spot seems to be taking a break from its astonishing ride in the last couple of months.
SHORT SCENARIO
Despite still quoting above the previous all time high of 2011 highlighted with the blue area, at the moment the priority is downwards. Indeed, the price of XAU is currently below the 8daily moving average (which was strongly broken downwards ) and inside the Fibonacci retracement area of the last leg down (the small green rectangle), meaning that if not broken to the upside, the next movement will be a continuation of the short term downtrend with another leg down. Any level within those could be good for opening a short position, even if a retest of the moving average would be the perfect signal, with targets indicated by the arrows in the chart
LONG SCENARIO
Instead, should the price broke both the 8 moving average and the Fibonacci retracement area to the upside with a daily close, the two targets would be the previous high and the green rectangle (Fibonacci extension of the last leg up), respectively.
SHORT SCENARIO
Despite still quoting above the previous all time high of 2011 highlighted with the blue area, at the moment the priority is downwards. Indeed, the price of XAU is currently below the 8daily moving average (which was strongly broken downwards ) and inside the Fibonacci retracement area of the last leg down (the small green rectangle), meaning that if not broken to the upside, the next movement will be a continuation of the short term downtrend with another leg down. Any level within those could be good for opening a short position, even if a retest of the moving average would be the perfect signal, with targets indicated by the arrows in the chart
LONG SCENARIO
Instead, should the price broke both the 8 moving average and the Fibonacci retracement area to the upside with a daily close, the two targets would be the previous high and the green rectangle (Fibonacci extension of the last leg up), respectively.