Bearish Engulfing on XAU/USD

Bearish Engulfing on XAU/USD

An interesting technical pattern has been formed in the trading instrument. At the moment, XAU/USD quotes are consolidating after a prolonged rally. The demand for safe assets has weakened significantly. In the near future, a technical correction is not ruled out. A classic pattern of Price Action, Bearish Engulfing (H4 timeframe), is a confirming signal. A trading instrument is testing the “mirror” support level of 1720.00. We recommend paying attention to this situation.

If the price fixes below 1720.00, XAU/USD sales should be considered. The nearest goal for profit-taking is 1695.00. The movement is tending to 1680.0-1670.0. Confirmations and market entry points should be looked for on lower timeframes. When following positions, we recommend using a trailing stop.

by JustForex 2020.05.26

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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