$XAUUSD: Convergence of Fibonacci Levels & Bullish Patterns

kelmarin

XAUUSD Analysis:

After the drop below the neckline and established support at $2674, we anticipated a decline that could reach $2639. This represents the 200% Fibonacci extension and is the default target for the head and shoulders pattern formed above support.

We also anticipated the formation of a bullish crab pattern that could appear at $2642, slightly above the default target zone for the head and shoulders, and upon further analysis of lower timeframes, we also identified the formation of a bullish butterfly pattern today at $2637, below the previously mentioned levels.

We are therefore in a convergence zone between Fibonacci levels, with the formation of new patterns that could favor a potential recovery attempt from the recent decline.

The default target for the bullish crab pattern (higher degree) is projected at $2668.

Note: A price drop below the most recent support could invalidate this pattern.