XAU/USD: Fibonacci analysis

December 31, 2015

A fall could continue.

As it can be seen on the 4-hour chart, the price was falling along the 61.8% arc for two weeks. On Thursday, it obstructed the 61.8% fan line and tried to correct up. It currently reached the 61.8% arc again and is likely to resume the fall toward the level of 1058.80 (23.6% correction). Its breakdown would allow the pair to fall to 1050.50. In case of a price rebound from the level of 1058.80, around its crossover with the arc and fan line, the pair could grow towards 1063.95 (38.2% correction) and 1068.05 (50% correction).

On the daily chart, the price is heading to the level of 1051.10. However, in case of a price reverse and a breakout of the level of 1068.05, in the medium-term the pair could grow towards 1082.80 (23.6% correction).

Trading tips

Short positions can be opened from current prices with targets at 1058.80, 1050.50 and stop-loss at 1063.00.

Alternative scenario

Pending buy orders can be placed at the level of 1058.80 with targets at 1063.95, 1068.05 and stop-loss at 1055.00.

Publication source
LiteForex information  LiteForex reviews

October 24, 2016
Important economic events for the coming week
Monday, October 24, 2016 - JPY Small Business Confidence (OCT), EUR Markit/BME Germany Manufacturing PMI (OCT P), USD Markit US Manufacturing PMI (OCT P)...
October 21, 2016
US Presidential Election: Final Debate Aftermath
With the dust having settled after Wednesday final US presidential debate of the 2016 campaign between Donald Trump and Hillary Clinton, the results have become rather apparent...
October 20, 2016
Doting on Draghi
The ECB meeting arrives today when EURUSD is testing key levels. The mid-year lows at 1.0952 is perilously close as I write, whilst the post-Brexit referendum low of 1.0913 being in the frame after that. It’s hard to see the ECB adding to its quantitative easing policy...

FIBO Group Rating
HotForex Rating
Larson&Holz IT Ltd Rating
FOREX.com Rating
FXCM Rating
FXTM Rating

Beeoptions Rating
TropicalTrade Rating
OptionFair Rating
Binary Brokerz Rating
EZTrader Rating
Porter Finance Rating