April 19th, 2021
Weekly Forecast 18 - 23 April
On the Weekly time frame, we can see the price holds on a key support zone where the most recent uptrend line coincides. We have a bullish divergence in play based on the MACD histogram, an indication that the buyers are showing their interest in gold.
A double bottom with bullish divergence on the daily time frame provides a strong technical pattern as another bullish evidence. The price has created a false break of the 1700 psychological level and is holding above it at the moment. Following the double bottom pattern the price moved higher and broke above the neckline so technically the price is expected to climb further.
Plotting Fibonacci on the corrective move down show us that the 38.2% - 50% Fibonacci retracement levels are good potential target zone for the expected move up.
On the H4 chart, we expect to see pullback and then continuation higher.
A daily bearish divergence on the moving averages of the MACD and the creation of a swing lower low indicates us that the instrument is in a corrective phase down.
While the price holds below the a key rejection zone 0.7270 – 0.7320, we expect to see the price pushing lower.
A bullish trend on the Daily time frame ends with the price creating higher highs, higher lows pattern, a sign of potential corrective phase down. Bearish divergence on the MACD indicator verifies the bearish view.
As long as the rejection zone 1.2895 – 1.2985 holds we expect to see pullbacks upside and then further continuation lower.
MACD bullish divergence on the H4 chart is the main hint that short term bullish pullback is likely now, before the sellers will take the control again.