On 12 February, the gold market, known as XAUUSD, shows interesting movements. The prices are moving in a specific pattern. First, the market is indicating a bearish pennant pattern after it previously went down. This means that the prices have created a zone where they fluctuate between the highest and lowest points from last Monday.
XAUUSD Context
The market hasn’t been able to reach new highs. It faced rejection not just once, but twice when it tried to go up along the trendline that points downwards.
Now, the prices are trapped between two important levels: resistance and support. This situation hints that we might see a significant move in the market very soon, likely within this week. I believe the price will rise again to the edge of the resistance or the range. However, after reaching that point, it’s expected to drop. The price will likely go down to test the support level once more. This pattern is a classic example of the market expanding after it has squeezed together.
XAUUSD Trading Idea for 12 February 2024
My aim is to focus on the support level that lies between the years 2007.