The chart on the left shows gold's daily timeframe. Here, the precious metal is in its bearish area between the lower blue and red bands. Moreover, the chart shows heikin ashi candles, which are trend following. The current candle is blue, indicating a potentially exploitable rally in weakness. To this end, the right-hand hourly chart is interesting. Price has retraced 50% of its prior down move (blue horizontal), which overlaps with the R2 pivot resistance. The RSI is also overbought (green rectangle). If the hourly EMAs cross down, bears may be targeting the current confluence of resistance and overbought condition.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.