Gold/US Dollar spot rate – Short-term up­trend and next tar­gets

Financial Mirror (Cyprus) - - FRONT PAGE -

Trad­ing from the bear­ish move­ment of the XAU/USD (Gold/USD), i n a Daily chart, from $1,307.64 as of Jan­uary 22, we no­ticed the end of this mo­tion in March 17. For­ma­tion of a bullish Fail­ure Swing bot­tom pat­tern oc­curred be­tween April 29 un­til May 13.

First bot­tom was formed on May 1 with a low price at $1,169.92, fol­lowed by a top on May 5 with a high price at $1,199.57.

The sec­ond bot­tom was price at $1,178.99.

We ob­served an up­ward pen­e­tra­tion of ($1,199.57) and the for­ma­tion of an up­trend on­wards.

This con­firms a bullish

re­ver­sal

in

trend

re­ver­sal

formed on May 11 with a

low the last Top from May 13

(up­trend).

If the top falls be­low our break point (1,199.66) on a weekly closing ba­sis then the Fail­ure Swing pat­tern would not be valid.

Con­tin­u­ing with our anal­y­sis, we set up our ex­pected tar­gets (1st, 2nd and 3rd), which is the ver­ti­cal dis­tance from the last top to the last bot­tom.

Fol­low­ing our anal­y­sis the price has the up­side po­ten­tial to reach at some point the value of $1,245.00 and it is ex­pected to rise to $1,268.32 within the up­com­ing weeks. Fi­bonacci con­firms our anal­y­sis with the lev­els 50.00, 61.80 and 76.40 to agree with our three tar­gets.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.