12 January the price exactly matches what I was thinking about recently. Here’s what happened: XAUUSD, the gold against US dollar pair, bounced back from its support level. This bounce created a pattern known as a double bottom. Currently, the price is moving in a narrow range. It’s near the edge of a trading channel. I believe there’s a good chance that the market will break out of this channel. If it does, the price is likely to go up and test the big resistance areas again. I think this will happen because the sellers, also known as the bears, weren’t able to push the price down further at the support level.
XAUUSD Context
Now, let’s look at some recent market movements. The market went below the lowest point it reached last Monday. This movement seemed like a false breakout of the support level. But then, the price started to move up quickly. This movement is called an impulse move. Watching these developments, I expect that the price will soon break out of the channel. After it breaks out, I believe it will continue to rise.
XAUUSD Trading Idea for 12 January 2024
I have a specific target in mind for the price. I am focusing on the resistance zone near the 2050 level. That’s where I expect the price to go.