XAU/USD 4 Hour Chart
Chart Action Points
| Action: Potential buy positions above $1816 | Action: Potential sell positions below $1816 |
| Take Profit 1 (TP1) at $1830 | Take Profit 1 (TP1) at $1807 |
| Take Profit 2 (TP2) at $1843 | Take Profit 2 (TP2) at $1800 |
Comments
- The RSI on a 4-hour Gold chart is at 33.58 and moving slowly upwards after dropping to 26 points yesterday, it suggests that the gold market may have been oversold and is now showing signs of a potential rebound. The fact that the RSI is slowly moving upwards suggests that the momentum of the rebound may be building.
- The 20 SMA dropping from the top indicates that the short-term trend is shifting downwards, while the 50 SMA moving flat suggests that the longer-term trend is neutral or uncertain. The upcoming crossover of the 20 and 50 SMA could confirm a bearish trend reversal if the 20 SMA crosses below the 50 SMA.
- Traders may want to look for additional confirmation of the bearish trend before taking a short position. This could include things like bearish candlestick patterns, a break of key support levels, or a drop in momentum indicators like the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD)
NZD/USD 4 Hour Chart
Chart Action Points
| Action: Potential buy positions above 0.6106 | Action: Potential sell positions below 0.6106 |
| Take Profit 1 (TP1) at 0.6158 | Take Profit 1 (TP1) at 0.6065 |
| Take Profit 2 (TP2) at 0.6190 | Take Profit 2 (TP2) at 0.6035 |
Comments
- An RSI reading of 34.50 on a 4-hour chart suggests that the NZDUSD pair may not be oversold but is showing some weakness in its upward momentum. The fact that the chart is sloping upwards suggests that the pair is currently in an uptrend. Traders may want to look for bullish price action confirmation before entering a long trade. This could include things like higher highs and higher lows, bullish candlestick patterns, and a breakout of key resistance levels.
- When the 20 SMA crosses below the 50 SMA, it is generally seen as a bearish signal, indicating a potential shift from an uptrend to a downtrend. Here the 20 SMA drops from the top and the 50 SMA's drop is flat, it suggests that the downtrend may not be as strong as it could be. This is because the 50 SMA has not yet confirmed the bearish trend by starting to trend downwards.