2 February the price matched my previous expectation perfectly. It hit the specific level I was watching and then reversed direction. The gold price against the US dollar, known as XAUUSD, has now touched a very important resistance level. This price movement is closely related to what we might expect from the upcoming Non-Farm Payroll (NFP) news. As a result, I am looking to enter a trade at this resistance level, which is also close to the upper edge of the upward price channel.
XAUUSD Context
If the price starts to decline from this area, especially if it forms a specific type of candle known as a long-tailed candle, indicating rejection of higher prices, it could be a good opportunity to sell. In the past, the price has reversed at this resistance zone, specifically around the 2070 level, on several occasions.
XAUUSD Trading Idea for 2 February 2024
My goal for this trade is to take profit at the support level, which is around 2042.5. This is where I anticipate the price might settle after reversing from the current resistance level.