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.

Open Account

Get Free Analytics

* required fields
Last Articles
All Articles
Choosing Currency Pairs in Forex Trading
The forex market is the most liquid one among other markets where banks, brokers, corporations, traders, investment and hedge funds actively participate in the exchanging operations and set the pace. In this article you will find out how to make this "currency choice" and meet your trading objectives.
Read more
The Best Time to Trade Forex in Malaysia
The forex market has its ups and downs throughout the day, meaning that the activity in the morning is completely different from the activity in the evening. As a trader, you want to enter the market at its most active hours. Read on to learn more about the most advantageous time for trading currency pairs in Malaysia.
Read more
What is the Best Time to Trade Forex in Indonesia
Your trading results depend on many things. One of them is the time of the day when you trade. This article is to help you build an optimal schedule for your profitable forex trades and find the best hours for trading forex in India.
Read more