This bearish channel has confirmed support and resistance multiple times over the last three weeks. Prices testing the resistance band on the topside or the support band on the downside have been attractive reversal opportunities.
Gold just closed below the neckline of this complex Head & Shoulders top. This formation points to a potential sharp move lower. The measure rule indicates an initial profit target of $1210 which based on Bulkowski's statistical analysis is reached 46% of the time for this pattern.
Personally, I like to look at many different indicators. Classical charting patterns, momentum divergences, fibonacci retracements and extensions. However, one of the most interesting tools and a new favorite of mine to use is Elliott Wave Analysis - especially within Forex markets. Have a look at my take on the short-term EURUSD market below using Elliott Wave...
