Japanese Candlesticks Analysis 06.03.2020 (GOLD, NZDUSD, GBPUSD)
XAUUSD, “Gold vs US Dollar”
As we can see in the H4 chart, Gold has completed the correction; right now, it continues the ascending tendency. At the moment, the pair is reversing after finishing an Engulfing pattern and may later reach 1705.00. After that, XAUUSD may test the channel’s upside border, rebound from it, and then resume falling towards 1635.50. However, one shouldn’t ignore another scenario, according to which the instrument may return to 1635.50 without testing the resistance line.
NZDUSD, “New Zealand vs. US Dollar”
As we can see in the H4 chart, after breaking the descending channel’s upside border, NZDUSD has formed an Engulfing reversal pattern. Right now, the pair is expected to reverse. We may assume that after reversing the price may reach 0.6230 and then continue falling. At the same time, one shouldn’t exclude an opposite scenario, according to which the instrument may grow to return to 0.6350.
GBPUSD, “Great Britain Pound vs US Dollar”
As we can see in the H4 chart, the pair is no longer trading inside the descending channel. By now, GBPUSD has formed several reversal patterns, such as Shooting Star, close to the resistance level. Possibly, the pair may reverse and return to 1.2785. Later, the market may continue falling to reach the channel’s downside border and continue the descending tendency. However, there is another scenario, which implies that the instrument may grow towards 1.3010.