On 22 February, the price of XAUUSD met my expectations perfectly. It reached the level where I planned to take profits. During the 1-hour trading period, XAUUSD established a trading range and then successfully broke out of it. The market climbed above both the established trading pattern and the crucial resistance level at 2030.
XAUUSD Context
On the daily chart, a significant event occurred: a doji candlestick formed. This indicates uncertainty among traders, but I think the market will try to resolve this uncertainty. I expect it will push above this doji candlestick, aiming to test the resistance zone again.
Before, the price has shown resilience by rebounding off the upward trendline multiple times. Each time it faced rejection, it managed to close higher than this trendline. Based on these observations, I am looking forward to seeing if the price will test the daily resistance zone once more. There is also a possibility that the market will enter a phase of indecision, characterized by choppy trading conditions.
XAUUSD Trading Idea for 22 February 2024
My objective remains clear: I am targeting the resistance zone at 2043, which I believe XAUUSD will reach.