On 15 February, the gold market, known by its trading symbol XAUUSD, saw a significant drop following a news report. Just the day before, I had observed that the market was moving sideways, not showing any clear direction at the support level. Despite this, there was a strong bounce back from the support level on the four-hour chart, leading to a bar with a long tail forming. This pattern suggests that the price might continue to fluctuate within a narrow range.
XAUUSD Context
In addition, the one-hour chart showed a bullish divergence for the XAUUSD market. This indicates that the downward pressure on the price is losing its strength at a crucial support level. With this in mind, I’m expecting the market to rebound from the demand zone and start moving upwards.
XAUUSD Trading Idea for 15 February 2024
My trading strategy is focused on exploiting the liquidity just below the resistance level. Specifically, I am targeting the area around the year 2006 as a critical point for my trading objectives. This strategy is based on the expectation that the market will react positively to the support level’s resilience and the bullish signals on the chart, potentially leading to a profitable trading opportunity.