Forex Technical Analysis of XAUUSD for October 30, 2014

Resistance:

1215.50 – 23.6% Retrace of August to October selloff

1235.81 – 38.2% Retrace of August to October selloff

1255.08 - October 21 high

Support:

1210.38 – 61.8% Retrace of Oct’06 to Oct’21 advance

1204.93 – October 08 low

1182.88 – October 06 low

Trend: Bearish

Recommended position: Short 

Fell the most in three weeks as the Federal Reserve ended its bond-purchase program, cutting demand for the metal as hedge against inflation.

Studying charts of forex technical analysis will extract the following conclusions:

Analysis:

Yesterday’s sharp selloff has the yellow metal currently trading just above the support at 1210.38, the 61.8% Retrace of Oct’06 to Oct’21 advance. 

Option one: The price has failed to materialize a confirm close below the support at 1210.38, the 61.8% Retrace of Oct’06 to Oct’21 advance. The move is clearly overextended and the immediate scope while this point holds on a closing basis is for a bounce to unwind downside extremes.

Option two: If this recovery fails to hold off to keep the price above it, a close below the support at 1210.38 – 61.8% Retrace of Oct’06 to Oct’21 advance, with MACD firmly below its Zero line and RSI below the 50 line, an on-going bearish trend would be in place opening way for deeper selloff testing 1204.93, the October 08 low, targeting at 1182.88, the October 06 low.

 Alternative Approach of Forex Market

4H Chart:  The area 1218.00 – 1222.00 is a neutral zone.

If the price move upwards and close above the neutral zone, then the upward trading targets will be: 1227.00, 1233.00, 1238.00.

If price continue to move below the neutral zone, then the downward trading targets will be: 1200.00, 1190.00, 1182.00.

1H Chart: The area 1211.00 – 1213.00 is a neutral zone.

If the price move upwards and close above the neutral zone, then the upward trading targets will be: 1215.00, 1218.00, 1222.00. 

If the price move downwards and close below the neutral zone, then the downward trading targets will be: 1200.00, 1195.00.

Note : You can find forex signals on Twitter, or receive them absolutely free and without any obligation to metatrader4 after completing the contact form on our website.

We note the need to use always stop loss levels. After all the above informations we can design a suitable forex trading strategy in order to follow, which will have based on forex technical analysis.

Share