never traded this pair before, however looking at it its a little less volatile than gold usd. Using fib ill be looking for a potential sell on this one.
Waiting for the 21 ema and lips of the alligator to form a crest before returning to the downside.
- GBP: Looks consolidated in current area. Risk either side
- EUR: Managed to pull away from the low during yesterday trading. Keep a close eye on the current area
- JPY: Risk appetite looks to be rather weak at the moment still
- GOLD: USD weakness after the data yesterday caused a bullish spike on GOLD. Interesting to see if GOLD stays in this downtrend.
However since 2009 and before you can see that in all major currencies gold has acted as a protection hedge against inflation and depreciation of these currencies. Definetely not a short term trade but one for the long haul and from the charts it is clear, the blow off top has not occurred yet.
Staggeringly high uptrend in XAU/EUR in which the price may need to let off some steam and thus lose some gains, based on fib and structure TP indicts levels in which the price should be watch/positions closed.
Adding up the fundamentals.. The EU isn't going to hold up come Brexit Deadline. This pair should perform splendidly. Expecting new ATH in the long term.
My plan is to sell extensions and buy pull backs.
Bulls cannot drive the price past (1064.360) bears have taken over and are driving price down towards a previous test of (962.013) will hold my position TP is at (962.013) but will adjust SL along the way.
On 4H chart of XAUEUR, price consolidated at 1080 level, then spiked to 1103 with 2 bold bullish candles, expecting strong trend next week together with the gold cross on MACD.
Besides, CD leg of bearish ABCD pattern will finish near 1246, concides with middle channel of pitchfork, crucial resistance to watch.
In short term trade, TPS can be set at 1105 and 1116.