Gold hasn't formed a full-fledged downswing yet. The qualifying condition for this is a renewal of yesterday’s low (1846.93), after that the bulls might undertake an attempt of attack (black trajectory).
But a more reasonable development would be an extension of decline in direction of the support zone 1810.17-1818.32 (red scenario on the chart).
Local structure has signs of a reversal pattern “Head-and shoulders” with an already formed right shoulder. Thus drop of the rate might take place right from the current levels (red arrow).
But we can’t neglect support zone 1846.93-1849.53, which is capable of triggering a development of upward correction in direction of resistance 1859.73-1861.39 (black trajectory).
Main scenario: Drop to 1837.00 with aim at 1810.17-1818.32.
Alternative scenario: Testing of 1846.93-1849.53 followed by an upward pullback in direction 1859.73-1861.39.
Shorts to 1837.00 and 1810.17-1818.32.
FortFS wishes all traders a Happy Chinese New Year! Only from February 8 to March 12, 2021, we reduce spreads for the 4 most popular trading pairs. New values*: EURUSDf: 0.8 GBPUSDf: 0.9 USDJPYf: 1.0 XAUUSDf: 3.5 *These values are valid only for FLEX accounts Hurry up to take advantage of the offer! Learn more about spreads: https://www.fortfs.com/clients/specifications
Only until February 26, special deposit rates* are available for all traders in Malaysia, Indonesia, Vietnam and Thailand: 3.6 MYR = 1 USD 10 000 IDR = 1 USD 20 000 VND = 1 USD 25 THB = 1 USD *Only Local bank deposit method is included Hurry up to take advantage of the offer until […]