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Who’s up to trade retracements today?

I’m servin’ up these sweet setups on the 4-hour charts of AUD/CAD and gold!

Here are the pullback levels I’m watching:

Gold (XAU/USD): 4-hour

Gold (XAU/USD) 4-hour Chart

Gold (XAU/USD) 4-hour Chart

Heads up, gold bugs!

The precious metal recently busted through the ceiling around $1,725 then zoomed up to $1,788 before retreating. Price is still in the middle of a correction to the nearby areas of interest.

Where might more buyers hop in?

The handy-dandy Fib tool shows that the 38.2% level lines up with the broken resistance, which could hold as support moving forward.

A larger correction could reach the 50% Fib at the $1,700 major psychological mark or the 61.8% retracement level near the 200 SMA dynamic support.

Moving averages confirm that support levels are more likely to hold than to break, as the 100 SMA is above the 200 SMA.

Stochastic is even signaling that buyers are returning since the oscillator has started to pull up from the oversold region.

AUD/CAD: 4-hour

AUD/CAD 4-hour Forex Chart

AUD/CAD 4-hour Forex Chart

Will this trend reversal gain traction for AUD/CAD?

The pair was able to surge past its descending trend line that’s been holding since mid-August, indicating that an uptrend is in the works.

Price hit a ceiling around the .9000 major psychological barrier and is now in correction mode. So far, the 38.2% Fib appears to be holding as a floor right around the .8900 handle.

A deeper pullback could reach the 61.8% Fib that’s close to .8800 or the former trend line near the 200 SMA dynamic inflection point.

The 100 SMA just crossed above the 200 SMA to indicate that bullish momentum is picking up. At the same time, Stochastic looks ready to turn higher from the oversold area, confirming that bulls are returning while sellers take a break.

If any of the Fibs hold as support, AUD/CAD could make its way back up to the swing high and beyond.