The views here are solely based on Technical Analysis techniques using my personal Smart Money approach. Hence, it is important to understand that the trading of CFDs comes at a risk; if not properly managed, you may lose all of your trading capital. To avoid costly mistakes while you look to trade these opportunities, be sure to do your own due diligence and manage your risk appropriately.
XAU/USD: gold bets on the double bottom
2019-11-11 • Updated
TP1 1,267 TP2 1,286 TP3 1,301
On the daily chart of XAU/USD, bears have tried to implement the “Shark” pattern with 88.6% and 113% targets twice. The failure of bears will let the pair reach targets of the “Double bottom” pattern and will create opportunities for a bullish counterattack.
On H1, a forming of “Three Indians” and “Broadening wedge” patterns within the convergence (88.6% and 113% targets of the “Shark” pattern) increases risks of the bearish trend’s reversal. To pull the pair up, bulls need to break the resistance at 1,245.
Even though we've only witnessed sluggish movements from the Dollar over the past few weeks, the general idea and bias still seem intact and untampered. The bullish impulse however can be seen as "searching for support".
As I earlier indicated in my article this week, I am expecting an upward push from the Dollar as a reaction from the Demand zone I have marked out. The PPI release earlier moved prices a bit but lacked sufficient momentum to cause a significant break of structure - and thus, no change of trend.
For those who may be unfamiliar with Price Action trading, the horizontal arrows represent areas where the market structure was broken. As you can see in the scenario above, price broke below the previous low at the two marked instances
Let's start off with a look at the Daily timeframe on Bitcoin. We currently see price reacting to the rally-base-rally demand zone between the 15,600 - 14,300 price area. Price also seems to have found support off the trendline support as marked in the image above. Interestingly, this means the overall bias on BTCUSD is Bullish.
Central Bank Digital Currencies (CBDCs) are virtual national money. The idea of creating such currencies came to the authorities after the success of cryptocurrencies, which also exist only in digital form.