XAUUSD has been in a range on the Daily chart. However, the H4 chart suggests that XAUUSD might head towards the North. Today, the first H4 candle has been a solid Bullish candle, which made a breakout of last trading day’s higher high. Thus, buyers are going to keep their eyes at the breakout level to get an H1 Bullish Engulfing Candle to go long on XAUUSD today. Let us have a look at the H4 XAUUSD chart.
XAUUSD Price Action Analysis – 6th Feb 2018
Have a look at the massive H4 Bullish candle, which made a breakout at 1340.60. The immediate next H4 candle (is not finished yet) seems to be an Inside bar by holding the breakout level. This means if the price comes a bit down at the breakout level and we get an H1 Bullish Engulfing candle right at the level of 1340.60, then buying XAUUSD would get us some green pips. Let us have a look at the summary of the trade…
- Buy Limit Order: 1340.60
- Stop Loss: 1335.45
- Take Profit: 1351.75
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
Trading XAUUSD can be very rewarding since most of the time XAUUSD moves technically. The currency pairs have high impact news events every now and then. Traders have to count those. Sometimes even a good technical setup might not attract the traders if there is a high impact news ahead. XAUUSD does not have too many high impact news events. Unless there is a big political or geographical issue XAUUSD is usually very steady.
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