The below is the daily of the XAUUSD chart. Further to our previous article, Tuesday’s candle is a bearish reference candle (blue arrow). I.e. a candle with a lower high to either side of it. Yesterday’s candle closed below Tuesday’s low (green horizontal), giving weight to the bearish reference candle scenario. If the RSI(9) starts moving south of 50 this will indicate a growing underlying bearish momentum, which would be supportive of the bearish reference candle. As such, we continue to monitor.
Past performance is not an indicator of future results.
CHART SOURCE: FXCM MARKETSCOPE 2.0