The 5%ers' Blog
Confluence of Fibonacci 38.2% and Demand Level on XAU/USD
Three years ago, the XAU/USD price was sitting at 1375.00 zones and dropped to 1120.00 zones before creates a new high record.
During the last three years, the price retraced to the 1375.00 zones three times. But it didn’t succeed to break this resistance.
Yesterday, the price reached that resistance again, but this time it broke out the resistance and created a new high record in these past three years.
For now, in the long term, it seems that the XAU/USD price tends to reach 1550.00 zones. It is the next significant supply at the price above the new high record.
In the 4H chart, we can see the demand below where the price bounced from that demand and broke out the resistance above, which indicated a powerful demand.
This demand also confluence with the Fibonacci 38.2% of the last uptrend. This confluence between the demand and the Fibonacci 38.2% creates an excellent opportunity for buy position.
If the price retraces the demand below, it will be the right time to open buy position.
The target for this long term position will be 1550.00 zones.
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