Japanese Candlesticks Analysis 07.05.2021 (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 Doji, close to the support level, XAUUSD is reversing. In this case, the upside target of the correction may be the resistance area at 18400.00. At the same time, an opposite scenario implies that the price may continue the correction to reach 1800.00 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 Harami, close to the resistance level. The pattern materialization target may be the support level at 0.7170. 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 still trading sideways within the ascending tendency. By now, GBPUSD has formed several reversal patterns, such as Hammer, not far from the support area. At the moment, the pair is reversing in favor of further growth. In this case, the upside target may be at 1.3977. After that, the instrument may break the resistance area and boost the ascending tendency. Still, there might be an alternative scenario, according to which the asset may continue falling towards 1.3865 before resuming the ascending tendency.