Japanese Candlesticks Analysis 27.07.2022 (XAUUSD, NZDUSD, GBPUSD)

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, XAUUSD has formed an Engulfing reversal pattern not far from the resistance area. At the moment, the asset may reverse in the form of a new descending impulse. In this case, the downside target may be the support level at 1685.50. At the same time, the opposite scenario implies that the price may grow to reach 1740.00 first and then resume the descending tendency.

NZDUSD, “New Zealand vs US Dollar”

As we can see in the H4 chart, NZDUSD has formed a Hammer reversal pattern close to the support area. At the moment, the asset may reverse in the form of another ascending impulse. In this case, the upside target may be at 0.6300. After that, the asset may break the resistance level and continue moving upwards. However, an alternative scenario implies that the price may fall to reach 0.6200 before resuming its growth towards the resistance level.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, GBPUSD has formed a Hammer reversal pattern near the support level. At the moment, the pair may reverse in the form of a new ascending impulse. In this case, the upside target may be the resistance area at 1.2130. Later, the market may break this level and continue growing. Still, there might be an alternative scenario, in which the asset may correct to reach the support level at 1.1970 first and then resume the ascending tendency.