XAUUSD: Potential quick profits on trendline support bounce
Gold/Dollar has had a nice Bearish run lately (after a wonderful Bearish Cypher pattern had completed). The pair has been making new structure low after new structure low again and again. I have identified an opportunity to make some quick pips before the possible continued down trend.
The pair is currently in a consolidation. A little breather before a possible downtrend or possible uptrend if we do see a reversal. So far, the pair has touched a trendline resistance three times now in its consolidation and currently is at trendline support with Stochastic showing an oversold condition. This may be a great time to make some quick pips on a potential bounce of trendline support.
The targets I have set are based on the 0.382 and 0.618 which both matches structure. We could possibly see a retest of the structure at Target 1, for which the pair may then follow the larger Bearish pair. Another scenario is a continuation to the 0.618 level that could also possibly test the trendline resistance.
For a break of that resistance, we could then see a trend reversal for which the Bulls may lead.
Trade wisely, Trade Responsibly.
Comments/Suggestions are always welcomed.
The pair is currently in a consolidation. A little breather before a possible downtrend or possible uptrend if we do see a reversal. So far, the pair has touched a trendline resistance three times now in its consolidation and currently is at trendline support with Stochastic showing an oversold condition. This may be a great time to make some quick pips on a potential bounce of trendline support.
The targets I have set are based on the 0.382 and 0.618 which both matches structure. We could possibly see a retest of the structure at Target 1, for which the pair may then follow the larger Bearish pair. Another scenario is a continuation to the 0.618 level that could also possibly test the trendline resistance.
For a break of that resistance, we could then see a trend reversal for which the Bulls may lead.
Trade wisely, Trade Responsibly.
Comments/Suggestions are always welcomed.