Updated: Friday now, and seem we are reaching target profit! Almost 500 pips ‘ve earnt!!!
Gold price is widely followed in financial markets around the world. Gold was the basis of economic capitalism for hundreds of years until the repeal of the Gold standard, which led to the expansion of a fiat currency system in which paper money doesn’t have an implied backing with any physical form of monetization.
Below are my point of views about XAU/USD (Gold) on Forex market
- As all we can see, the main and strong now is downtrend (From Daily to hourly timeframe). The current price is 1715.
- In Day and 4H timeframe, the trendline has been broken. This mean gold will go down more to the next resistance (about 1668)
- Price fell down to 1717 then come back to test trend at price 1755 area one time. I suppose there one more time gold price goes up to 1720 before going down again.
- The gold price should fall to 1668 this week. If you want to buy or get in a long position, 1668 is a good entry but you also need more signals to confirm.
On my opinions, from now on place a short (sell) position on three point of price: 1715, 1728 and 1758, stop-loss when the price reaches 1761. Take profit when price down to 1668.
3 March 2021: Update: The price of gold is falling down as per my analysis. If you had taken short positions at 1715 and 1728, you have earned 130pips (the current price is 1708). To preserve my profit, I closed my short order of 1715 (earn 80pips), keep the other order of 1728, and wait, the price may go down more. I hope it comes to 1668.