Japanese Candlesticks Analysis 12.05.2021 (XAUUSD, NZDUSD, GBPUSD)

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the instrument is forming another correction. After forming several reversal patterns, such as Shooting Star, close to the resistance level, XAUUSD is reversing. In this case, the upside target after the correction may be the resistance area at 1850.00. At the same time, an opposite scenario implies that the price may continue the correction to reach 1815.00 before resuming its growth.

NZDUSD, “New Zealand vs US Dollar”

As we can see in the H4 chart, the correction continues. By now, NZDUSD has formed several reversal patterns, such as Hanging Man, close to the resistance level. The pattern materialization target may be the support level at 0.7190. Later, the price may test the support area, rebound from it, and resume moving upwards. However, an alternative scenario implies that the price may continue growing towards 0.7300 without testing the support level.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, the asset is trading sideways within the ascending tendency. By now, GBPUSD has formed several reversal patterns, such as Hanging Man, not far from the resistance area. At the moment, the pair may reverse in favor of further decline. In this case, the downside target may be at 1.4060. Later, the instrument may complete the pullback and resume growing to break 1.4215. After that, the market may boost its ascending tendency.