$XAUUSD: Convergence of Fibonacci Levels & Bullish Patterns
XAUUSD Analysis: After the drop below the neckline and established support at $2674, we anticipated a decline that could reach $2639. This represents the 200% Fibonacci extension and is the default target for the head and shoulders pattern formed above support.
We also anticipated the formation of a bullish crab pattern that could appear at $2642, slightly above the default target zone for the head and shoulders, and upon further analysis of lower timeframes, we also identified the formation of a bullish butterfly pattern today at $2637, below the previously mentioned levels.
We are therefore in a convergence zone between Fibonacci levels, with the formation of new patterns that could favor a potential recovery attempt from the recent decline.
The default target for the bullish crab pattern (higher degree) is projected at $2668.
Note: A price drop below the most recent support could invalidate this pattern.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.