Two weeks ago, we postulated that XAUUSD was charting a rising wedge on the daily scale, a bearish continuation pattern. Then, last week, we wrote about the rare bearish outside candle that started the week. This candle effectively completed the rising wedge, a bearish signal. Since then, the price has pulled back and retested the pattern's lower boundary. In effect, a lower peak (LP) has charted, setting up a platform for another impulse leg down and the possibility of a lower trough. If this happens, XAUUSD will have charted a lower peak followed by a lower trough, which is a downtrend.
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.