In the daily chart, gold approached the lower boundary of the descending channel, forming the bullish engulfing. 38.2% Fibonacci level (1046.42; 1375.16) is going through this candlestick pattern as an additional signal. It is noteworthy that potential pullback against the trend is possible, that is, up to the downtrend line only:

The ascending channel and the level of 1236.51 could be in the weekly chart. So, we should potentially wait for the gold to pull back up in the crossing point of this channel and that level:

The rate of USD/JPY is approaching the local descending channel away from which Japanese yen should pull back. Here it is wise to follow the candlestick patterns forming in the daily timeframe:

Please note that this material is provided for informational purposes only and should not be considered as investment advice. Trading in the financial markets is very risky.

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