ZuluTrade Blog

XAUUSD: Macro Analysis using Time Cycles

Market View | Tuesday, August 8, 2017 11:38 AM GMT

We have identified a symmetrical price action according the time factor on GOLD. Starting with the weekly timeframe, XAUUSD is forming a big range triangle while the upper trendline (T1) is still keeping prices below it. Using the RSI (5) (method for definition Highs and Lows), it has formed a major Swing High at 1296.  Heading to the daily timeframe, we have used the tool of Time Cycles and XAUUSD is following a specific time pattern. The Blue Time Cycle defines the Lows while the Yellow Time Cycles defines the Highs. Therefore, if Gold continues following the same pattern, then we may anticipate a new low near the end of August (Zone 1). Indeed the daily bias is uptrend as XAUUSD still moves above 21 EMA. Traders should focus on the recent Swing Low at 1255. If price violates it to the downside, then the selling pressure will be increased. On the other hand, the Bulls are still targeting the major Swing High at 1296. We will keep you posted!

XAUUSD Weekly

XAUUSD Daily

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