Such a scenario is likely to happen.
The reason is high inflation and recession.
It is not possible to suppress inflation with interest rates in a short time, this is a process.
In the near future, we may see sharp interest rate hikes on the ECB side as well.
This process seems to take a long time because inflation figures are at the peak of the last 40 years.
We shared more detailed macroeconomic comments in the previous posts, you can take a look.
*Note: The reason we're reviewing XAU/EUR is to get a better idea of the state of gold. Before buying an instrument, it will give you more insight to have a look at its charts with other crosses.
When we examine the price chart on a monthly basis,
The price is very close to the upper channel line, which is a major resistance for the price.
When we interpret the price according to the elliot wave pattern. It corrects the previous rise.
I think we are now in B bullish on this corrective move.
After low as low as $1650 last June, it closed the month with a strong doji candle formation.
*In candlestick formations, if the price holds above 1/3 of the needle, an increase is expected.
For this reason, pullbacks to $1650 levels can be considered as buying opportunities.
The reason is high inflation and recession.
It is not possible to suppress inflation with interest rates in a short time, this is a process.
In the near future, we may see sharp interest rate hikes on the ECB side as well.
This process seems to take a long time because inflation figures are at the peak of the last 40 years.
We shared more detailed macroeconomic comments in the previous posts, you can take a look.
*Note: The reason we're reviewing XAU/EUR is to get a better idea of the state of gold. Before buying an instrument, it will give you more insight to have a look at its charts with other crosses.
When we examine the price chart on a monthly basis,
The price is very close to the upper channel line, which is a major resistance for the price.
When we interpret the price according to the elliot wave pattern. It corrects the previous rise.
I think we are now in B bullish on this corrective move.
After low as low as $1650 last June, it closed the month with a strong doji candle formation.
*In candlestick formations, if the price holds above 1/3 of the needle, an increase is expected.
For this reason, pullbacks to $1650 levels can be considered as buying opportunities.