26 January the price of gold is currently not showing any strong upward or downward trend. Instead, it is fluctuating within a certain range. When we look at the daily chart, we notice that the price has recently gone lower than its lowest point on the previous day. I think that if the price goes up a little above the recent highs but then fails to continue rising, it will likely drop back down to the support level. This kind of movement is known as a fake breakout. It usually happens just above the resistance level. This pattern can be a sign that the market is gathering strength before it changes its direction.
XAUUSD Context
From my analysis, I believe that the market might revisit the price level where it started at the beginning of last week. This kind of reversal is common on Fridays. Markets often change their direction on Fridays, especially after they have been following a consistent trend for some days.
XAUUSD Trading Idea for 26 January 2024
My goal is to see the gold price reach the support level at 2012.5. I have set this level as my target because I think that is where the gold price might find stability and stop fluctuating.