XAUUSD Trend and Candlestick Analysis
Gold is still completing the second leg of the bull flag on the weekly chart and the bulls are taking a breath by forming a symmetrical triangle which if broken to the upside will have a target of around 1650, While the second leg of the bull flag targets 1750. The major resistance zone is 1617. 88 which is the high of a dark cloud cover that formed in March 2013.
Gold may rise Fundamentally because:
1. EURUSD is at its lowest and thus meaning the US Dollar is strong(But Gold is still edging up - What happens when the US dollar starts weakening)
2. The US Dollar may start weakening because there are fears there are bubbles in the stock market and the Bonds
3. China Revised the method for identifying the confirmed cases which increased the numbers on Thursday and Friday 14th. The numbers may continue increasing dramatically.
4. The number of doctors that have been affected is 1700 and that could increase the risk sentiment of the coronavirus.
Alternative scenario
If Gold breaks below 1558.89 then it will have broken the symmetrical triangle and may move all the way to 1520 with support at 1520 and this would cause Gold to fall lower.
Gold may rise Fundamentally because:
1. EURUSD is at its lowest and thus meaning the US Dollar is strong(But Gold is still edging up - What happens when the US dollar starts weakening)
2. The US Dollar may start weakening because there are fears there are bubbles in the stock market and the Bonds
3. China Revised the method for identifying the confirmed cases which increased the numbers on Thursday and Friday 14th. The numbers may continue increasing dramatically.
4. The number of doctors that have been affected is 1700 and that could increase the risk sentiment of the coronavirus.
Alternative scenario
If Gold breaks below 1558.89 then it will have broken the symmetrical triangle and may move all the way to 1520 with support at 1520 and this would cause Gold to fall lower.
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