Japanese Candlesticks Analysis 06.10.2021 (XAUUSD, NZDUSD, GBPUSD)

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the asset is finishing the correctional wave. After forming several reversal patterns, such as Stick Sandwich, not far from the resistance level, XAUUSD may reverse and resume falling. In this case, the downside target may be the support area at 1722.50. At the same time, an opposite scenario implies that the price may grow towards 1770.00 first and then resume trading downwards.

NZDUSD, “New Zealand vs US Dollar”

As we can see in the H4 chart, after testing the resistance area, NZDUSD has formed several reversal patterns, such as Doji. At the moment, the asset is reversing in the form of a new decline. In this case, the downside target may be the support level at 0.6820. After that, the asset may break it and continue moving downwards. However, an alternative scenario implies that the price may grow to reach 0.6963 before resuming its descending tendency.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, the asset is forming another descending wave from the channel’s upside border. By now, GBPUSD has formed several reversal patterns, such as Harami, not far from the resistance area. At the moment, the pair is reversing in the form of a new decline. In this case, the downside target may be at 1.3456. After testing this level, the market may break it and continue falling. Still, there might be an alternative scenario, according to which the asset may correct towards 1.3670 before reversing.