The precious metal lost 2.62% in the previous trading sessions and managed to break the support levels at our 23.6% and 38.2% Fibonacci retracements at 25.804 and 25.092 respectively; however, the second support breakout is not yet completed.
The Bollinger bands are somehow wide and volatility could be mild in the short term, the bands are stable and barely opening, which will not give much room for an aggressive move in either direction. The pair trades in between the bands, suggesting that the price is at a fair level, one of the reasons it lost so much previously is precisely because it was trading above the upper band and investors considered the price to be relatively high.
The relative strength index is at 52% which will give the pair enough room to move in either direction, the price is currently trading inside the Ichimoku cloud which is considered to generate market uncertainty; however, if the price gains some pips in the session it could exit the cloud and continue moving upwards in the medium term.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
