31 January the price matched my expectations in a perfect way. It hit the edge of the channel where we trade XAUUSD. After that, it went down from the high point it reached earlier. This drop caused a deceptive breakout. At the same time, it formed a range zone, a kind of price pattern.
I notice that sellers are putting in a lot of effort. They are making sure that the price does not go above a certain level.
XAUUSD Context
I think the price is likely to move towards a lower level, known as a support level. I have a few reasons for thinking this. First, the overall market isn’t moving clearly up or down. It’s just moving sideways. Second, there was a significant deceptive breakout at a resistance zone. This is a place where the price usually struggles to go higher. Third, the price made a rebound. It bounced back from a line that it usually follows on an upward trend. This bounce also affected the liquidity above that line. Lastly, the DXY, which shows how strong the US dollar is, is showing a bullish trend. This means it’s likely to get stronger.
XAUUSD Trading Idea for 31 January 2024
My aim is clear. I want to reach the support level, specifically at 2020.5.