Formation of a new lower low and lower high are confluences for a possible downtrend.
The price point previously reached this high area back in early March and the price was heavily rejected. A repeat of this pattern is more than likely, as the price has already rejected we can catch the rest of the pips down to the indicated support zones.
RSI and Stochastic's...
My outlook on gold at the moment. We have a complete head and shoulders on the daily timeframe with a perfect neckline formation. I am bias long with gold set for 1800, however I can't ignore this technical analysis. All formations on each timeframe looks set for a big drop! There is a small head and shoulders forming on smaller timeframes (1HR and 30M).
EURGBP seem to be repeating a previous pattern. Stochastic's showing signs of downward movement on the 4hr timeframe. RSI also oversold supporting downward movement. MACD has not crossed yet and may be the final indicator to wait on before entering this trade. Large risk to reward ratio on this trade if executed after awaiting confirmation.
Price is currently reaching a make or break area. The double top formation on the 4 hour chart suggests further downfall however it ultimately comes down to NZD economy vs USD economy. NZD reported the nation is COVID-19 free which is promising for the NZD whereas the US-China tensions are likely to escalate.
Ultimately the MACD has crossed on a 4 hour timeframe...
Weekly trend line has still not been touched on GBPAUD, MACD and RSI showing support for further downward movement. However Stoch is undersold which could be a small move upwards before downtrend continues.
Waiting for the failed breakout of the 1.83200 zone before entering a short trade.
CURRENTLY HOLDING AGAINST DAILY TRENDLINE
HEAVILY OVERBOUGHT ON 1 HOUR TIMEFRAME
TESTING 61.80% FIB RETRACEMENT LEVEL
CURRENTLY FORMING A DOUBLE TOP ON 30M TIMEFRAME
WAIT FOR PULLBACK AND MACD CONFIRMATION BEFORE ENTRY AS A BREAKOUT HERE COULD CREATE NEW HIGHS
With the price point now reaching a consolidation area following the recent general elections. I see the the strength of the pound greatly encouraged by the re-elected Boris Johnson.
There is the possibility for the GBPUSD to reach daily highs in the coming days. With an almost certain retest of the 1.32250 Price point (to form a right shoulder in a H&S...
GOLD has just retested a very low price point region and has just formed a head and shoulders pattern on the 1 hour timeframe.
Along with RSI and MACD confirmation this enough for me to BUY big lots in gold holding this position till at least the 1494 price point, however we could be expecting all time highs!!
Hold positions for as LONG as possible :)
The chart suggests that GOLD will regain upward momentum after hitting a well respected support zone (indicated in yellow) and possibly continue up to 1516.00 price points with the possibility to continue further into record highs.
However, due to golds volatility today the possibility of a breakout of this zone is looking more and more likely, which could be the...