Japanese Candlesticks Analysis 16.12.2021 (XAUUSD, NZDUSD, GBPUSD)

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the asset is still trading upwards. After forming an Engulfing reversal pattern not far from the support level, XAUUSD may reverse and continue forming its rising impulse. In this case, the upside target may be the resistance area at 1815.00. At the same time, an opposite scenario implies that the price may correct towards 1770.00 first and then resume trading upwards.

NZDUSD, “New Zealand vs US Dollar”

As we can see in the H4 chart, NZDUSD has formed a Harami reversal pattern close to the resistance area. At the moment, the asset may reverse in the form of a new decline towards the support level. In this case, the downside target may be at 0.6680. After that, the asset may break this level and continue moving downwards. However, an alternative scenario implies that the price may correct to reach 0.6840 before resuming its decline towards the support level.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, GBPUSD has formed a Harami reversal pattern near the resistance area. At the moment, the pair may reverse and start a new descending wave. In this case, the downside target may be at 1.3155. After testing the support level, the market may break it and continue trading downwards. Still, there might be an alternative scenario, according to which the asset may correct to reach 1.3310 before resuming the downtrend.