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Silver’s still a country mile from all-time record highs, yet gold is testing $1,900, and thankfully, Chris Vermeulen is here to help us sort it all out, including the stock market, the dollar, and a whole lot more…
While the scandal served as catalyst for the fire, the match was lit a long time ago
By Elliott Wave International
“Catastrophic Failure” — June 18 CCN
“Swift, Spectacular Implosion” — June 25 Alijazeera.com
“Doomsday” — June 18 Seeking Alpha
These are a few descriptions for Munich-based Fintech firm Wirecard, whose recent epic fall from grace is one of the biggest financial bombshells in Germany’s history. This chart captures the stock’s crater-making crash in June — from 104 euros per share, to ONE single euro.
10 out of 10 mainstream experts say the catalyst for Wirecard’s crash was the June 19 revelation that nearly $2 billion in supposed profits had mysteriously vanished from the company’s balance sheet. (If it was ever there to begin with). Dubbed the “Enron of Germany” by a June 29 CNBC article, Wirecard’s scandal led to the firing of its CEO, a bankruptcy filing, and a $4 billion IOU-zilla issuance to creditors.
Surmised the June 25 Reuters:
“The collapse of Wirecard, once one of the hottest fintech companies in Europe, dwarfs other German corporate failures. It has shaken the country’s financial establishment … A scandal like Wirecard is a wake-up call that we need more monitoring and oversight than we have today.”
True, except there has already been more than one “wake-up call” — as early as two years ago.
Back on January 23 — of 2018 — one news source revealed how Wirecard was well-known for “making highly unusual purchases,” using “adjusted metrics to inflate the appearance of earnings,” and skirting a 7-month long investigation into a deal that saw 175-285 million euros missing from the company’s coffers, leaving the sellers unpaid.
Yet, as that same article observed, these dubious episodes didn’t stop investors from “still placing their faith — and money — behind Wirecard.”
The ultimate show of that faith came in August 2018 when the green startup from a tiny Bavarian town known for beer gardens and bird-watching unseated Germany’s second-largest bank, 150-year old Commerzbank, from Germany’s venerable DAX stock market index.
And then came the latest Wirecard scandal, which supposedly “caused an 80% plunge in the company’s stock price over the last two days.” (New York Times, June 19)
All of which begs the question: Why did investors, after backing up Wirecard’s dubious practices for years, suddenly lose faith in the company?
And was there a way to foresee that change of heart?
Our friends at Elliott Wave International believe the answer is yes — and it comes down to investor psychology, or social mood.
Wrote Elliott Wave International’s President Bob Prechter in his New York Times best-selling book Conquer the Crash:
“When the social mood trend changes from optimism to pessimism, creditors, debtors, producers and consumers change their primary orientation from expansion to conservation.”
“Conservation” for investors manifests as doubt in the worth of a stock. Adds Prechter:
“People seem to take for granted that financial values can be created endlessly seemingly out of nowhere and pile up to the moon. Asset prices rise because those transacting agree that their prices should be higher…
“Conversely, for prices of assets to fall, it takes only one seller and one buyer who agree that the former value of the asset was too high. If no other bids are competing with that buyer’s, then the value of the asset falls, and it falls for everyone who owns it.”
The visible result of this shift in psychology occurs on a market’s price chart, as specific Elliott wave patterns.
Thus, one month after Wirecard became the DAX’s #2 stock, Elliott Wave International’s September 2018Global Market Perspective warned that, once the extreme optimism surrounding the fintech sector reached a peak, the mania’s “soaring valuations and ever-accelerating growth forecasts” would reverse and the entire industry would experience a “a catastrophic sell-off.”
From there, Wirecard’s meteoric rise reversed with shares plunging 50% into March of 2019. Officials stepped in to stem the decline with an unprecedented single-stock ban on short selling.
Elliott Wave International’s March 2019Global Market Perspective foresaw the futility in such “Draconian measures” and showed this chart of Wirecard.
You can see that a five-wave rally into the 2018 peak was complete, marking a reversal in investor psychology — and the next move would see a “downward spiral.”
March 2019, Elliott Wave International’s Global Market Perspective:
“Catastrophic” was exactly how the media described the selloff that followed:
But as you can see, from an Elliott wave perspective and the independent analysis of Elliott Wave International’s Global Market Perspective, the writing was on the wall nearly TWO years before the June 2020 scandal.
The best part, our friends at Elliott Wave International have just alerted us to their July 23-30 Global Opportunities FreeWeek. This 7-day event invites you behind the paywall with instant access to their July 2020 Global Market Perspective — and other free forecasts for 50+ most-watched global markets.
To join Elliott Wave International’s Global Opportunities FreeWeek, all you need is a free Club EWI password. Take 30 seconds to get one now and on July 23-30, read their forecasts free. (No catch, and no credit card is required.)
This article was syndicated by Elliott Wave International and was originally published under the headline Wirecard Goes from $24 Billion to Bust: A “Wake-Up Call” Two Years in the Making. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
James Kwantes of Resource Opportunities profiles a company with a project in Quebec’s Abitibi Greenstone Belt.
Genesis Metals Corp. (GIS:TSX.V; GGISF:OTC) is building ounces and grade at its Chevrier project in Quebec’s Abitibi Greenstone Belt, as Phase 1 drill results outline growing zones of higher-grade material within the existing Main Zone deposit. The drill results are changing the profile of the deposit, which hosts current indicated mineral resources of 395,000 ounces (8.5 Mt averaging 1.45 g/t gold; cutoffs 0.5 g/t open pit and 0.95 g/t underground) and inferred mineral resources of 254,000 ounces (5.9 Mt averaging 1.33 g/t gold; cutoffs 0.5 g/t open pit and 0.95 g/t underground).
The latest drill intercepts are well above those average grades, with highlights including:
GM20-63: 9.71 g/t Au over 3.65 meters (within 76 meters of 1.93 g/t)
GM20-64: 9.73 g/t Au over 4.5 meters (within 84 meters of 1.65 g/t)
GM20-64: 9.64 g/t Au over 2.3 meters
GM20-64: 14.4 g/t Au over 2.2 meters
GM20-65: 5.57 g/t Au over 3.2 meters
Those intercepts were part of the second and final batch of assays from the 2,500-meter drill program at Chevrier that focused on southwest and northeast portions of the Main Zone. Most of the current resource estimate is contained within the Main Zone, with the East Zone hosting a small Inferred resource. Genesis used a new 3D model to better understand distribution and controls on high-grade gold mineralization.
Genesis CEO David Terry and his team are now reviewing the drill hole data as they evaluate the best targets for follow-up drilling, which is fully funded. The next drill program will likely take place in late summer or early fall; a further 5,500 meters of drilling is planned for the remainder of 2020.
Each of the Phase 2 intercepts above starts within 200 meters of surface, and holes 63 and 64 hit high-grade within wider mineralized envelopes. That bodes well for future inclusion in the pit-constrained resource once Genesis updates the Chevrier resource estimate. Hole 65 also hit deeper gold mineralization: 5.14 g/t Au over 3.95 meters from 213.3 meters downhole, and 7.88 g/t Au over 3.1 meters from 227.5 meters downhole.
Those assays followed Phase 1 drill results from Chevrier announced on June 2 that included:
8.92 g/t Au over 1.0 meters (within 1.79 g/t over 7.35 meters)
3.99 g/t Au over 3.0 meters
10.2 g/t Au over 1.15 meters (within 1.36 g/t over 19.7 meters)
“We look forward to additional drilling to better define this new high-grade component of the deposit, and to results from the ongoing surface exploration program focused on advancing priority targets elsewhere on the large Chevrier project,” Terry stated.
Likely targets include further definition of higher-grade shoots within and below the existing Main Zone deposit, as well as several high-priority targets elsewhere at Chevrier identified through last year’s property-wide glacial till survey. Ground prospecting to further refine those targets continues.
The biggest beneficiaries in this emerging gold bull market are juniors that can hit meaningful drill results containing high-grade gold. The Phase 1 drill program has delivered that for Genesis, with several hits that are multiples of average grades at the existing deposit. The company’s $15-million valuationless than many pre-drill juniorsis backstopped by Chevrier’s existing gold resource and now, growing higher-grade zones.
The widths and grades of Genesis’s Phase 1 drill program compare favorably to the mineralization at well-known Canadian gold deposits including SSR Mining’s Seabee underground gold mining operation in northern Saskatchewan. Seabee’s average reserve grades are just above 10 g/t gold and the company is underground mining widths of 1-2 meters.
Chevrier Drill Core
Genesis, of course, is an earlier-stage play. But the company’s shares remain under the radar, with the stock trading at or below where it spent most of 2019. That’s despite the developing high-grade zones as well as these positive features:
Backing of the serially successful Discovery Group;
Located on a highway and near rail lines in the eastern Abitibi greenstone belt in a thriving mining district (Chibougamau) with other high-grade discoveries;
More than $2 million in the treasury for further drilling later this year.
Fresh approach under the leadership of Dr. David Terry and property-wide investigation and analysis, starting with soils.
Chibougamau is a rich gold mining district of high-grade discoveries and historical mines. More than 6.7 million ounces of gold has been mined in the area and there are plenty more ounces in the groundincluding at high grades. Just southwest of Chevrier is the Monster Lake JV, where IAMGOLD and JV partner TomaGold have delineated 433,300 ounces of gold at 12.14 g/t Au.
Team, backers, project and neighborhoodit all matters. So does price of entry. There’s a lot of money chasing a small number of hot junior stocks that have been running hard. But the big money is made positioning in promising plays that have yet to move. Genesis’s current valuation may spell opportunity for investors confident that this top team will identify more high-grade gold, both within the existing deposit and through discoveries elsewhere on the 290-sq-km property.
James Kwantes is the editor of Resource Opportunities, a subscriber supported junior mining investment publication. Kwantes has two decades of journalism experience and was the mining reporter at Vancouver Sun, the city’s paper of record.
Disclosure: Genesis Metals is one of three Resource Opportunities sponsor companies and James Kwantes owns Genesis Metals shares, which makes him biased. This article is presented for information purposes and is not investment advice. All investors need to do their own due diligence.
Streetwise Disclosure: 1) James Kwantes’ disclosures are listed above. 2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports. 5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
Resource Opportunities Disclaimer: Readers are advised that this article is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. The information is based on sources which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available data.
Ukraine’s central bank left its main interest rate steady after cutting it nine times, living up to its guidance from last month, and said it expects to “keep the policy rate at the current low level at least until the end of the current year.” The National Bank of Ukraine (NBU) kept its key policy rate at 6.0 percent after cutting it four times this year by a total of 7.50 percentage points and nine times and by 12 percentage points since April 2019. The bank’s board, chaired by its new governor Kyrylo Shevchenko, said the decision to maintain the key rate would help curb inflation as the economy gradually recovers while leaving room for the cost of credit to decline to single digits. “By keeping the key policy rate at 6%, the NBU leaves enough room for monetary stimulus in order to provide the economy with additional impetus for growth if consumer and investment demand recover more slowly than expected,” the bank said. NBU said its recent rate cuts had not yet been fully transmitted to the economy as banks were still continuing to lower loan and deposit rates, and in order to anchor interest rates in single digits financial markets must be confident economic policy is consistent and there is a reasonable balance between curbing inflation and monetary stimulus. “Next year, the NBU will take decisions on the key policy rate taking into account whether or not inflationary risks materialize, how social standards change, and at what pace the economy is recovering,” the central bank said. It was the first policy decision by the bank’s board under Shevchenko who last week took over from Yakiv Smoliy who resigned at the start of this month due to what he said was systematic political pressure, hitting financial markets and sparking concern at the International Monetary Fund (IMF). Ukraine’s hryvnia fell after Smoliy’s shock resignation on July 1 and continued to depreciate until today’s policy decision, which sparked a rise in the exchange rate. The hryvnia was trading at 27.75 to the U.S. dollar today, up 0.3 percent on the day but down 4.0 percent since the departure of Smoliy. Since the start of the year, the hryvnia is down 15 percent. In its June policy decision, when the rate was cut 200 basis points, the central bank said the cycle of rapid monetary easing had come to an end and future decisions would depend on the prospects for inflation. Ukraine’s inflation rate rose to 2.4 percent in June from 1.7 percent in May and continued to rise in July, the bank said, adding inflationary expectations had also worsened. NBU expects inflation to continue to rise gradually to 4.7 percent by the end of this year due to higher energy prices, monetary and fiscal stimulus, and then return to its target range of 5.0 percent, plus/minus 1 percentage point this year in 2021 and 2022. Ukraine’s economy is recovering from quarantines imposed to curb the spread of the COVID-19 virus but NBU still raised its forecast for the economy to contract by 6.0 percent this year from an earlier forecast of 5.0 percent. Ukraine’s economy shrank 0.7 percent in the first quarter from the previous quarter but NBU said the low point in growth was in the second quarter and the pace of the recovery will be restrained. “Considering the high level of uncertainty over the spread of the coronavirus, both the public and businesses are likely to remain cautious about their consumer and investment decisions,” the bank said, adding the slow exit from the crises from other countries will also limit the chances of a more rapid economic recovery. In 2021 and 2022 Ukraine’s economy will then expand, helped by the monetary, fiscal stimulus and foreign demand, resuming growth at a level of around 4.0 percent. NBU said its forecast are based on continued cooperation with the IMF and its support is important for Ukraine to overcome the effects of the pandemic, repay government debt in “due time and in full,” maintain access to international capital markets and ensure international investors retain their interest in Ukrainian assets.
The National Bank of Ukraine released the following press release:
“The Board of the National Bank of Ukraine has decided to keep its key policy rate at 6% per annum. This on the one hand will curb price growth as the economy recovers in 2021–2022, while on the other hand leaving room for further decreasing the cost of credit to one-digit levels.
Inflation is continuing to accelerate gradually, albeit remaining below the 5% ± 1 pp target range. Inflation rose to 2.4% in June, and continued to accelerate in July according to NBU assessments. Inflation was mainly driven by raw food prices, which grew due to unfavorable weather. The inflation expectations of businesses and households have also worsened. At the same time, price growth has been restrained by weak domestic demand, benign FX market conditions, and relatively low energy prices.
Inflation will continue to rise gradually and will return to the 5% +/- 1 pp target range this year.
In H2 2020, inflation will accelerate somewhat (to 4.7% as of the year-end) due to a number of factors – both external and internal. First, the faster price growth will be driven by loose monetary and fiscal policies, which will mitigate the adverse effects of the COVID-19 pandemic, and support consumer demand and business activity. Second, higher energy prices and the lower fruit harvest will affect prices.
Inflation will remain within the target range in 2021–2022.
The economy of Ukraine will contract by 6% in 2020 but will resume growth at the level of around 4% in subsequent years.
The NBU has revised its forecast of how much real GDP will drop in 2020 as a result of the coronavirus crisis, from 5% to 6%. The low-point of the fall was passed in Q2.
In H2 2020, the economy started to recover. With the quarantine restrictions eased, there has been a pickup in business activity. The majority of businesses in the most affected sector – services – have already resumed normal operations. The labor market, although in a worse condition than before the crisis, is showing signs of stabilization. Business activity and private consumption were given additional support by the NBU’s stimuli, loan repayment holidays, tax relief, and increased unemployment allowances from the budget.
However, the pace of economic recovery will be restrained, as consumer and investment demand remain subdued. During the crisis, households significantly cut their spending on non-staple goods, while businesses put their development plans on hold and revised their staffing levels and payroll funds. Considering the high level of uncertainty over the spread of the coronavirus, both the public and businesses are likely to remain cautious about their consumer and investment decisions. The slow exit from the crisis by other countries, including Ukraine’s main trading partners, limits the chances of a more rapid recovery of the economy.
In 2021–2022 the Ukrainian economy will grow, thanks to monetary and fiscal stimuli and higher foreign demand. Economic growth will mainly be driven by private consumption.
In 2020, the current account of the balance of payments will post a surplus for the first time in five years.
The NBU has significantly improved its current account forecast for 2020, from a zero deficit (compared to a deficit of 1.7% of GDP under the old methodology used in the April forecast) to a surplus of 4.4% of GDP.
A significant drop in imports due to falling demand for durable goods, closed borders for travel, and low energy prices will contribute to the current account surplus. Given the stable global demand for food, the pandemic will affect exports less than imports. In addition, the amount of remittances from labor migrants to Ukraine will be larger than expected.
That said, in the years to come, the current account will return to deficit on the back of pent-up consumer and investment demand and the expected decrease in gas transit.
The key assumption of this forecast is that Ukraine continues to cooperate with the IMF, as set forth in the Memorandum of Economic and Financial Policies.
Complying with the terms of a new Stand-By Arrangement with the IMF, including those that require that Ukraine conducts consistent fiscal and monetary policies, will safeguard macroeconomic stability, which is required for a steady and continued economic recovery.
Support from the IMF is important for financing budget expenditures on overcoming the effects of the pandemic, repaying government debt in due time and in full, maintaining access to the international capital markets, and ensuring that international investors retain their interest in Ukrainian assets.
Financing from the IMF and other official international partners will help Ukraine to significantly increase its international reserves. International reserves are expected to rise to about USD 30 billion in 2020, growing to USD 32 or 33 billion in the coming years.
A longer-lasting coronavirus pandemic and the potential return to stricter quarantine measures required to overcome it, both in Ukraine and globally, remain the key risk to this forecast. This could result in a more significant and longer-lasting cooling of both the global and the Ukrainian economy.
Other risks also remain significant. They include:
the negative impact of certain court rulings on macrofinancial stability
an escalation of the military conflict in eastern Ukraine
the higher volatility of global food prices, driven by global climate change and the risk of stronger protectionist measures.
Given the gradually accelerating inflation and the above balance of risks, the NBU Board kept the key policy rate unchanged, at 6%.
The NBU expects to keep the key policy rate at the current low level at least until the end of the current year.
Next year, the NBU will take decisions on the key policy rate taking into account whether or not inflationary risks materialize, how social standards change, and at what pace the economy is recovering.
Previous key policy rate cuts have not been fully transmitted to the cost of financial resources – the banks are still continuing to cut their loan and deposit rates. However, anchoring interest rates at the single-digit level requires that financial market participants be confident that economic policy is consistent and that there is a reasonable balance between inflation curbing and monetary stimulus.
By keeping the key policy rate at 6%, the NBU leaves enough room for monetary stimulus in order to provide the economy with additional impetus for growth if consumer and investment demand recover more slowly than expected.
The decision to keep the key policy rate at 6%, was approved by an NBU Board Decision on the key policy rate – No. 488-D, dated 22 July 2020.
А new detailed macroeconomic forecast will be published in the Inflation Report on 30 July 2020.
A summary of the discussion between Monetary Policy Committee members that preceded the approval of this decision will be published on 3 August 2020.
The euro currency hit a two-year high on Wednesday, boosted by a weaker greenback and the EU Covid-19 relief package.
Price action is now into its fifth consecutive weekly gains. The common currency quickly breached past the 1.1550 handle.
Given the current momentum, EURUSD is now looking quite close to hitting the 1.1600 handle.
The sharp pace of gains, however, put the common currency at risk of a pullback.
A breakdown of the minor rising trend line could confirm this. The initial support is at 1.1500. It is yet to be tested.
GBPUSD Established Support At 1.2643
The cable is trading flat for the day, following a pullback after Tuesday’s gains.
GBPUSD pared gains to fall back to the price level of 1.2643. As a result, support is now established at this level, evident from the rebound off this level.
For the moment, GBPUSD will need to break past the recent highs of 1.2768 to confirm further upside.
Gains might stall near the upper resistance level of 1.2813. However, if the bullish momentum prevails, we might expect to see GBPUSD breaking past this level as well.
For the moment, the downside risks continue to fade.
WTI Crude Oil Fails To Breakout Above 42
Oil prices surged ahead with the gains on Tuesday as price briefly traded above the 42.00 handle.
However, failure to build upon the momentum saw prices being rejected, pushing crude oil to close below 42.00.
At the time of writing, price action is once again testing this level. A breakout above 42.00 will potentially clear the way for crude oil to continue pushing higher.
The next key target in the medium term will be the 50.00 level. This will see oil prices recovering nearly 70% of the declines from earlier this year.
Can Gold Prices Reach A 10-Year High?
The precious metal is quite bullish resuming its strong uptrend. Following days of consolidation, the precious metal surged ahead, logging four consecutive sessions of gains.
While price has broken past the 1850 level, it is still shy of the all-time highs of 1920.80.
In the near term, support could likely form at the 1850 handle in case of a pullback.
A strong breakout from the rising price channel will potentially suggest the bullish continuation.
US real yields, which take out the expected consumer price changes from the nominal yield on bonds, are plunging at present and have fallen to their lowest levels since 2012. As we all know, central banks have cut rates and unleashed historic amounts of monetary stimulus to prop up their economies and avert collapse. Investors are therefore being pushed into risker assets and they are having to seek out other sources of income.
USD selling continues on the back of this and we’ve also seen disappointing employment data this afternoon, as the streak of 15 consecutive weeks of falling initial jobless claims came to an end. The headline print hit a four-week peak and the insured unemployment rate, which counts the number of people actively collecting benefits compared with the total size of the labour force, remains stubbornly high at 11.8%.
Risk appetite is fairly constructive, even as stocks trade around flat on the day. Deteriorating US-China relations are being ignored while Oil is steady, shrugging off yesterday’s large inventory build.
Eurphoria
The single currency is enjoying its fifth straight day of gains and it seems only a matter of time before the 1.16 level is breached. Italian bond yield spreads versus their German counterparts continue to narrow and even German consumer confidence figures recovered more ground than expected this morning.
It seems a medium-term strategic view on the region is playing out, more than the short-term ones we have seen in the past. Positioning in the Euro has built up, but it is clearly less present in other pairs. With the 2019 high of 1.1570 now looking like support, if EUR can clear the 1.16/1.1620 area, there is not much resistance until the big figures above. That is not to say it will go straight there without some kind of correction! Support comes in around the March high at 1.1495/1.15.
Cable enjoying the ride
GBP/USD is holding its ground at recent highs, even though no tangible progress (again) has come from the ongoing UK-EU trade negotiations. Price action is even suggesting an imminent test of the 1.2813 high from last month.
Barring an unexpected breakthrough in the trade talks, sterling may struggle to get any higher, with the 200-day Moving Average offering support around 1.27.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.
As we can see in the H4 chart, USDCHF has reached the “oversold area”. In this case, the price is expected to rebound from 0/8 and then resume trading upwards to reach the resistance at 2/8. However, this scenario may no longer be valid if the price breaks 0/8 to the downside. After that, the instrument may continue falling towards the support at -1/8.
In the M15 chart, the pair may break the upside line of the VoltyChannel indicator and, as a result, continue the ascending tendency.
XAUUSD, “Gold vs US Dollar”
As we can see in the H4 chart, XAUUSD has reached the “overbought area”. In this case, the price is expected to rebound from 8/8 and resume falling to reach the closest support at 7/8. However, this scenario may no longer be valid if the price breaks 8/8 to the upside. After that, the instrument may continue growing towards the resistance at +1/8.
In the M15 chart, the pair may break the downside line of the VoltyChannel indicator and, as a result, continue trading downwards to reach 7/8 from the H4 chart.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
