17 January the market first encountered resistance but then quickly moved downwards, resembling a rocket’s descent. Specifically, the XAUUSD currency pair, which is gold priced in US dollars, broke down and stayed below two key price levels: 2050 and 2030. I believe the market is likely to experience some back-and-forth movement within a certain range. This belief comes from observing that the market has returned to its typical trading range.
XAUUSD Context
If the price begins to retreat from the resistance zone and the line indicating the upward trend, I will start searching for a signal to sell. I am looking for this signal because the price has repeatedly bounced back from this level on multiple occasions. A significant event occurred when a large, bearish candlestick, which looked like a panda, formed. This candlestick broke through the level, underscoring its importance.
XAUUSD Trading Idea for 17 January 2024
I have set my target at the previous support level, which is at 2014.10. This is the level where I plan to achieve my trading goal.