24 January the price of gold, represented by XAUUSD, has recently interacted with a key level known as the support level. After touching this level, the price did not continue to fall. Instead, it moved back up. This movement returned the price into a zone where it has been fluctuating, known as the range zone.
Currently, the price is not showing a clear direction. It is moving back and forth within this range. An interesting pattern, a triangle, is appearing on the chart when we look at the 1-hour timeframe. This triangle pattern often indicates that the price might continue to move within the range for some time.
XAUUSD Context
There are a couple of scenarios that could unfold from here. The first one is a bullish move. This would mean the price starts to go up significantly. The second scenario involves the price squeeze indicated by the triangle pattern. This could result in the price continuing the upward trend that it started earlier.
I am closely watching to see if the price will go up to test the area of recent high resistance again. However, the market could also remain erratic and unpredictable, which is often referred to as a choppy market. Despite this possibility, I am optimistic. I believe that during this period of accumulation, where the price is building strength, it will eventually break through and close above its current level.
XAUUSD Trading Idea for 24 January 2024
My objective is to reach the resistance zone, which is around the 2045 level. This is where I anticipate the price may go based on my analysis.