What to expect on XAU/USD (GOLD) and how to trade it?
DAILY CHART EXPLANATION:
We observe that price broke strongly the Weekly Resistance Zone (now support zone) with the actual daily candlestick. At this moment it is facing the 1.272 Fibonacci Extension Level of the previous daily impulsive movement, and also the 1.618 Extension of a lower timeframe impulse (explained on the 4h chart). Due to this, price may retrace a little to the broken zone to continue the upside movement. We will wait for this confirmation to take long positions, since we do not like to trade trying to catch the price after it made a big movement.
4H CHART:
WEEKLY CHART:
We observe that price broke strongly the Weekly Resistance Zone (now support zone) with the actual daily candlestick. At this moment it is facing the 1.272 Fibonacci Extension Level of the previous daily impulsive movement, and also the 1.618 Extension of a lower timeframe impulse (explained on the 4h chart). Due to this, price may retrace a little to the broken zone to continue the upside movement. We will wait for this confirmation to take long positions, since we do not like to trade trying to catch the price after it made a big movement.
4H CHART:
WEEKLY CHART: