XAUUSD, Gold, recently tested its support zone on the 1D timeframe. It seems to have been rejected by rejected though.
1D Analysis
The Friday candle closed as a bullish candle after testing the support zone with the previous days candle. The pair can be seen inside a descending parallel channel, bullish flag. Within that bullish flag the pair was also within a smaller bearish flag that it recently broke out of which initiated the sell after its re-test. The pair might be heading to re-test the resistance of the bullish flag if it doesn't gain enough selling pressure to re-test the support zone and eventually break it.
4H Analysis
The pair closed its last 4H candle as a bearish open marubozu which indicates lack of selling pressure towards the close of the candle. The two 4H candles preceding the bearish open marubozu had re-tested the support turned resistance zone before getting rejected. We can expect the pair to head towards the support turned resistance zone once again if it doesn't gain enough selling pressure to continue the downwards move. If it however does gain enough pressure then we can expect the pair to head towards its support zone by breaking the trend line support.
1H Analysis
The pair can be seen within an ascending triangle which it attempted to break to the upside but got rejected by the 4H support turned resistance zone. After dropping back inside the ascending triangle the pair dropped into an ascending parallel channel, and seems to have tried to retest its resistance but was not successful. If the pair manages to break the channel to the upside it might result in it breaking the resistance of the ascending triangle, if not we might see the pair head to test the support of the channel which also turns out to be the support of the ascending triangle. A break below the channel might result in the pair heading towards the 4H support zone.
Conclusion
Monitor the pair on the 1H timeframe to see exactly what the pair does and how it coincides with the 4H and 1D in order to make an accurate trading decision.
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1D Analysis
The Friday candle closed as a bullish candle after testing the support zone with the previous days candle. The pair can be seen inside a descending parallel channel, bullish flag. Within that bullish flag the pair was also within a smaller bearish flag that it recently broke out of which initiated the sell after its re-test. The pair might be heading to re-test the resistance of the bullish flag if it doesn't gain enough selling pressure to re-test the support zone and eventually break it.
4H Analysis
The pair closed its last 4H candle as a bearish open marubozu which indicates lack of selling pressure towards the close of the candle. The two 4H candles preceding the bearish open marubozu had re-tested the support turned resistance zone before getting rejected. We can expect the pair to head towards the support turned resistance zone once again if it doesn't gain enough selling pressure to continue the downwards move. If it however does gain enough pressure then we can expect the pair to head towards its support zone by breaking the trend line support.
1H Analysis
The pair can be seen within an ascending triangle which it attempted to break to the upside but got rejected by the 4H support turned resistance zone. After dropping back inside the ascending triangle the pair dropped into an ascending parallel channel, and seems to have tried to retest its resistance but was not successful. If the pair manages to break the channel to the upside it might result in it breaking the resistance of the ascending triangle, if not we might see the pair head to test the support of the channel which also turns out to be the support of the ascending triangle. A break below the channel might result in the pair heading towards the 4H support zone.
Conclusion
Monitor the pair on the 1H timeframe to see exactly what the pair does and how it coincides with the 4H and 1D in order to make an accurate trading decision.
If you liked this analysis make sure to give us a thumbs up, leave us a comment and make sure to follow us for future ideas 👍❤