By Admiral Markets
Gold spot – XAU/USD is currently forming a bearish SHS pattern (head and shoulders) while still capped below the descending trendline. At this time we need to see if the retracement will reach the POC zone. The POC zone 1286.55-1289.58 (W L3, ATR pivot, historical double top/sellers) if reached could reject the price towards 1279 and below 1274.10 X cross (ATR + trendline) we could see a continuation towards 1266.53. Currently the price is consolidating and we could see a movement soon.
L3 – Weekly Camarilla Pivot (Weekly Interim Support)
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
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D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance)
D L3 – Daily Camarilla Pivot (Daily Support)
D L4 – Daily H4 Camarilla (Very Strong Daily Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
Source: https://admiralmarkets.com/analytics/technical-analysis/nzd-usd-continuation-bearish-shs-pattern?#c!=1 © Admiral Markets
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Article by Admiral Markets
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