Japanese Candlesticks Analysis 06.02.2020 (GOLD, NZDUSD)

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the ascending tendency continues. By now, XAUUSD has completed several reversal patterns, such as Hammer, near the channel’s downside border. At the moment, the pair is reversing. The upside target may be at 1585.00. However, one shouldn’t ignore another scenario, according to which the instrument may resume falling towards 1540.00.

NZDUSD, “New Zealand vs. US Dollar”

As we can see in the H4 chart, the pair is still moving near the support level, where it has formed several reversal patterns, including Hammer. At the moment, NZDUSD is expected to reverse; the closest upside target may be at 0.6530. At the same time, one shouldn’t exclude an opposite scenario, according to which the instrument may fall to reach 0.6425 and continue forming the descending channel.