18 January the market has recently seen a significant downward movement, falling below the earlier lowest point that was noted locally. In the case of the XAUUSD currency pair, we observed a retracement right after it moved out of its established pattern. This movement involved a retest, where the price returned to check the strength of the support zone marked at 2000. This retest demonstrated that the price had a tough resistance at this level. However, following this, the price fell even further, dropping below the lowest point it had reached in the previous week.
XAUUSD Context
Looking forward, I predict that the price will initially rise again. It will head towards a level known as the resistance level. As it does so, it’s likely to encounter a narrow range. The price is expected to align with a certain trendline during this movement. But after reaching this point, I expect it to start falling again. If we zoom out for a broader view of the price trends, it’s clear that the price has broken out of a very large triangular formation. This breakout is significant as it sets the stage for the price to move towards the demand zone, which is around the 1985 level.
XAUUSD Trading Idea for 18 January 2024
For my target, I am focusing on the price reaching a specific support level, which is 2004.600. This is the point where I expect the price to stabilize or show some reaction.