FX.co ★ Trading idea for gold

Yesterday, news broke that Pfizer has developed a COVID-19 vaccine with "amazing levels of efficacy."

Markets immediately reacted to this event by rising sharply in terms of quotes. For example, the US dollar grew very rapidly as investors immediately flocked back to the currency. As a result, gold collapsed by an incredible 10,000 pips!

In fact, the quotes have formed an ABC pattern, in which wave "A" is the downward initiative from yesterday.

Following this, the best action now is to open short positions, starting from the 61.8 and 50 Fibonacci retracement levels.

The main target will be the level of 1848.

The risk/profit ratio of such a transaction is 1:1.

But of course, there is still the need to manage and control the risks in order to avoid losing profit. As we all know, trading in this market is very precarious and uncertain, but also very profitable provided that we use the right strategies.

Price Action and Stop Hunting were used for the trading idea. To add to that, the plan is in relation to the strategy presented last November 3.

Good luck!