Here are the key points for this chart of XAUUSD: - Trend. I find the trend still UP, although the last leg up looks like an ending diagonal. - Fundamentals: Gold is strong, while USD is weak in terms of relative strength. The USD is relatively overbought for a weak ccy; Gold has been strengthening in recent hours, but it wasn't evident in this market. - Support. The falling price is expected to find support on the upsloping black trendline, which happens to be around the 23.6 retracement. - Resistance. Price may find the first resistance at the botteom of the topping candle (1248) and the next one at the blue upper median line parallel. - Trading opportunites: enter long at one of the support levels, with a stop-loss order below the corresponding prior low, looking to exit at some of the resistance levels with R:R of at least 1:1.
Here's the summary of how I see the current situation in financial markets (as of Wed. 16.03.2016, 11:00 CET): The strongest currency: AUD (currently strengthening; those who trade the SEK will find it even stronger); The weakest currency: GBP (recently oversold, likely to strengthen soon). The leading markets: - GBPAUD - trending down; - AUDNZD - trending up; - EURNZD - trending up; The developing potential entry opportunities: - AUDUSD - go long. ----------- Disclaimer: There is a very high degree of risk involved in trading forex . I assume no responsibility or liability for any trading or investment results. My posted statements and charts may unintentionally include inaccuracies. All content posted is for educational purposes only and is not a financial advice. The presented set-ups are not solicitations of any order to buy or sell. Rather, you should use the information only as a starting point for doing additional independent research, your own due diligence, in order to allow you to form your own opinion regarding trading decisions. No assumption should be made in relation to the performance or accuracy of the methods shown. No claims are made as to the success or profitability of any of my posts.
Thank you. :-) That's what I intended it to be like.
andberg
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Thank you for this post it's helping me to find my target. From my view it looks like the price is going from blue line to the other, so price should go at least to the middle blue line and find support at conjunction of blue green and red lines near 1190 in April
ForceFollower
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Thank you for your comment. Yes, indeed, it can develop that way, although first I expect a rebound off of the black trendline. It may give a start only to a weak corrective wave or another impulsive one. We'll see. Given the numerous overlapping wavelets/candles during the Feb-Mar swing up, your bearish scenario is quite likely to develop.