Japanese Candlesticks Analysis 27.01.2021 (GOLD, NZDUSD, GBPUSD)
XAUUSD, “Gold vs US Dollar”
As we can see in the H4 chart, after plunging earlier, the metal is still trading sideways. Right now, after forming several reversal patterns, such as Engulfing, close to the horizontal resistance level, XAUUSD may reverse and resume falling towards the support area. In this case, the downside target will be at 1800.00. At the same time, an opposite scenario implies that the price may continue its growth towards 1890.00 without reversing and correcting.
NZDUSD, “New Zealand vs. US Dollar”
As we can see in the H4 chart, the pair is still correcting. Right now, after forming several reversal patterns, such as Shooting Star, close to the resistance level, NZDUSD may reverse and later reach the support area at 0.7180. However, an alternative scenario implies that the price may continue growing towards 0.7280 without reversing and forming any corrections.
GBPUSD, “Great Britain Pound vs US Dollar”
As we can see in the H4 chart, the uptrend continues. Right now, after forming a Shooting Star pattern not far from the resistance area, GBPUSD is reversing. In this case, the correctional target is the support level at 1.3600. After that, the instrument may rebound from this area and resume moving upwards. Still, there might be an alternative scenario, according to which the asset may continue growing to reach 1.3820 without reversing and correcting.