Japanese Candlesticks Analysis 21.12.2021 (XAUUSD, NZDUSD, GBPUSD)

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the asset is still trading upwards. After forming a Hammer 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 1820.00. At the same time, an opposite scenario implies that the price may correct towards 1775.00 first and then resume trading upwards.

NZDUSD, “New Zealand vs US Dollar”

As we can see in the H4 chart, NZDUSD has formed a Hammer reversal pattern close to the support area. At the moment, the asset may reverse in the form of a new correctional impulse towards the resistance level. In this case, the upside target may be at 0.6780. After that, the asset may rebound from the level and resume moving downwards. However, an alternative scenario implies that the price may continue falling to reach 0.6655 without any corrections towards the resistance level.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, GBPUSD has formed an Engulfing reversal pattern near the support area. At the moment, the pair may reverse and start a new correctional wave. In this case, the upside correctional target may be at 1.3260. After testing the resistance level, the market may rebound from it and resume trading downwards. Still, there might be an alternative scenario, according to which the asset may continue falling to reach 1.3150 without any corrections towards the resistance level.