This pair has been putting in some bearish technical signals over the past week or two. One of which would be the rejection of the key resistance level 120.580 which has held firm on many occasions.
We also have the MA's crossed for the first time since may as well as fib retracements from the 61.8% zone and the ...
Break and retest of key weekly support and on the hourly time frame we have saw a break of the counter trend line
Potential to initially bag 3% on this trade. This is also a position that is great for the long term
Although technically this pair is 'bullish' due to the higher highs and higher lows it has been putting in, there could be a great opportunity to catch a short trade all the way down to 1.950's. This area has many confluences and is a superb area of support.
If we break this level then we will have confirmation ...
I believe we could be looking at another leg down for Gold after making consistent swings for a while now.
We have many technical confluences so lets see what happens.
- Trendline bounce
- Capped by 61.8% Fib level
- Stalling at resistance zone
- Formed a new Lower High
1040's Downside Target
As many pairs are still low on liquidity I will only be looking for a position once.if we come down to retest or break the ascending trend line.
As you can see on the chart, there is many confluences for this move.
After originally holding a short bias on this pair, I took some time away from the charts and come back with a fresh mind. After taking a closer look at the longer term price action and the previous few daily - weekly candles I would see that there was a strong bullish sentiment.
Here is a chart that speaks for it ...
Weekly Descending channel which has been putting in lower highs.
Although we had a fake out we are still currently within the channel, therefore if we can break the counter trend line then I will be looking for us to achieve the lower boundaries which also lines up with many areas of confluence.
After posting this pair recently, as the week had played out I quickly noticed this channel/flag forming.
We have a key area of resistance at both 0.87000 and 0.884000. Currently we are range bound being capped by the 0.50% fib level at 0.87000. if we break this level I will look for price action around 0.884000 ...
Closed the week under the 1.1000 key weekly resistance level, therefor would favour a short. However due to current market conditions I would like to see some momentum and a clear break out of the channel.
Looks like a text book head & shoulder formation has formed. Multiple rejections of a key resistance barrier.
Looking for range lows as first target, I will scale down to a lower time frame to look for an entry upon the break of the counter trend-line.
If we can break this counter trend-line then I will look for a retest before getting short to 1.50000
Alternatively if we break above the range highs I will be looking at price action to warrant a long to 1.61000
From the monthly price action we can see that the 1.2800 level is a major zone of resistance for this pair. After hitting resistance we can clearly see this pair putting in lower low and lower high swings, with the most recent rally off the triple bottom at 1.19's failing to break above 1.26's creating a new lower ...