Japanese Candlesticks Analysis 02.07.2021 (XAUUSD, NZDUSD, GBPUSD)

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the asset continues moving sideways not far from the support level, where it has formed several reversal patterns, such as Harami and Doji. At the moment, XAUUSD may reverse and start a new decline to reach the support area at 1746.50. At the same time, an opposite scenario implies that the price may correct towards 1795.00 before resuming the descending tendency.

NZDUSD, “New Zealand vs US Dollar”

As we can see in the H4 chart, the descending tendency continues. By now, NZDUSD has formed several reversal patterns, such as Inverted Hammer, close to the support level. At the moment, the correctional target is the channel’s upside border at 0.7015. After testing this level, the asset may rebound from it and resume moving downwards. However, an alternative scenario implies that the price may fall towards 0.6925 without reversing and correcting.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, the asset is forming another correction within the downtrend. By now, GBPUSD has formed several reversal patterns, such as Inverted Hammer, not far from the support area. At the moment, the pair may reverse and start a new pullback towards the channel’s upside border. In this case, the correctional target may be the resistance level at 1.3850. After testing it, the market may rebound and resume falling to reach the support area at 1.3700. Still, there might be an alternative scenario, according to which the asset may continue falling towards the support area without reversing and correcting.