We will look at a few currencies today, talking about our open and closed positions. At the moment, we are long EURNZD and EURAUD while shorting XAUUSD. Our USDJPY has been closed with +67pips.
We exited XAUUSD at 1174.5 to minimize our losses since price broke above downward trend line and price is supported at 1170.
We are in favor of short XAUUSD at 1172.02 with stop loss 1176.7, take profit 1151.5 and risk reward 4. This short position is taken due to USD strength. In addition, we observe strong resistance level at 1175, price is resisted at 1175 by short term downward trend line and horizontal resistance. The entry was taken after pin bar signal was identified. One small concern is the support level FE 61.8 at 1171.5.
XAUUSD is currently supported by medium term upward trend line from Mar 2015. At the same time, price broke short term downward trend line from May 18th. Just yesterday, price spiked up but returned to prior price level at 1191. Based on technical analysis itself, i favor long position. However, with the spike yesterday and USD strength across all pairs, i am in doubt. At the moment, i have no interest for a position in XAUUSD but i will keep a watch. Even if price moves higher, upside movement is limited by downward trend line stretching from Jan 2015.
I took a long in XAUUSD at 1191.45, stop loss at 1186.5, take profit at 1206, risk reward ratio is 3.
XAUUSD is well supported by upward trend line. At the same time, it broke a short term downward trend line. At support level 1190, pin bar signal is also detected. In addition, USDJPY broke upward trend line, leading to USD depreciating. Hence, there is a higher probability for long XAUUSD to work out.
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