The market is currently facing a significant challenge. It is attempting to overcome a specific resistance zone following a period of downward movement. In this context on 2 January, XAUUSD, which represents the value of gold in US dollars, has shown a distinct pattern. It formed a bar with a very long tail right at the resistance point.
XAUUSD Context
So far, the market has not succeeded in reaching new higher price levels. This failure indicates that there might be a downward trend soon. It seems likely that prices will go back down to the lows they reached previously. My expectation is that the price will decrease because the market is not accepting the price range of 2073 to 2076.
XAUUSD Trading Idea for 2 January 2024
When we look at the price movements over shorter periods, a clear pattern called a double top appears. This pattern suggests that we may soon see the price move in the opposite direction, likely heading downwards. However, if the market manages to break through the resistance zone we are currently watching, the next important price level to watch will be around 2080.