Gold has touched a strong support level of 1241.00 and formed a bearish engulfing. This means that it’s time to sell the asset. Let’s open the short positions when the market opens. The only risks are that the price can still slightly go up testing the 50% Fibonacci level of 1249.00:
We are approaching the broken descending channel and a strong support level of 0.8330 for the second time in a row. Let’s buy the pair when the candlestick pattern is forming:
COT CFTC reports also confirm that the pair is heading North as large operators keep buying this asset. Of course, we should not forget that support level of 0.8330 may get broken. Should it happen so, this matter will signify the liquidation of operators’ long positions and the pair looking South. So, let’s wait for the candlestick patterns to form:
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