Fibonacci Retracements Analysis 21.05.2018 (GOLD, USDCHF)
XAUUSD, “Gold vs US Dollar”
As we can see in the H4 chart, the downtrend continues; after completing a short-term correction to the upside, XAUUSD has broken the local low and reached the retracement of 61.8%. The next downside target may be the retracements of 76.0% at 1267.90. At the same time, one can see the convergence being formed, which may indicate a new pullback once the instrument reaches its downside targets.
In the H1 chart, after finishing the short-term correction, XAUUSD has broken its previous low and right now is trading towards the post-correctional extension area between the retracements of 138.2% and 161.8% at 1281.80 and 1279.60 respectively. The convergence that is being formed right now may indicate a possible pullback towards the retracements of 23.6%, 38.2%, and 50.05 at 1290.70, 1297.40, and 1302.05 respectively.
USDCHF, “US Dollar vs Swiss Franc”
As we can see in the H4 chart, USDCHF is trading sideways. The closest and the following targets of this sideways correction are the retracements of 23.6%, 38.2%, and 50.0% at 0.9940, 0.9871, and 0.9816 respectively. If the price breaks the high at 1.0056, the uptrend may continue.
In the H1 chart, the convergence is being formed, which may indicate a new impulse to the upside. After breaking 1.0056, the instrument may continue growing towards the post-correctional extension area between the retracements of 138.2% and 161.8% at 1.0096 and 1.0121 respectively.
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