23 January the price almost matched what I had predicted earlier. It reached the entry point I had in mind, but then it started to drop. However, it did not hit my Take Profit (TP) level, falling short by just 1.5 points. In the market, there was a formation of a double top pattern right at the resistance zone. This pattern indicates that the buyers, also known as bulls, don’t have enough strength to push the price higher. As a result, the price moved back into the range zone.
XAUUSD Context
Before this recent development, the XAUUSD was moving in a sideways pattern. This means it was fluctuating back and forth between two prices: 2035 and 2015. Based on this behavior, I think the market will continue to move within this range for some time. I am expecting the price to experience a two-legged pullback. This type of pullback means that the price will go down in two distinct steps, moving towards the lower end of the current range.
XAUUSD Trading Idea for 23 January 2024
I have set my target at the support level of 2020. This is the level where I aim to achieve my trading goals.