Type:
Bearish Dip
Key Levels:
Resistance: 1951.9
Pivot: 1941.8
Support: 1918.1
Preferred Case:
Prices are consolidating in a triangle pattern. We see the potential for a dip from our Pivot at 1941.8 in line 61.8% Fibonacci retracement towards our 1st support at 1918.1 in line with 50% Fibonacci Retracement . Our bearish bias is further supported by Ichimoku clouds forecasting bearish momentum.
Alternative Scenario:
If prices were to reverse, they can potentially dip towards our 1st support at 1918.1 which is a graphical swing low and also in line with 50% Fibonacci retracement.
Fundamentals:
As the renewed attacks and scheduled negotiations are on the way, we would expect the precious to maintain bids as a safe-haven asset. Downward pressure would only come from raised hopes of negotiation, and resolution, between the warring nations. As TA and FA are in conflict, we would ask investors to exercise prudence in trading.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.