5 January the market first reached its intended target. Once it hit this target, the XAUUSD then moved back towards an area known for resistance. After moving to this resistance area, the price forcefully broke through various resistance levels. This action took the price out of its previous range. I now think the market is eagerly waiting for a specific news release. Traders expect this news during the New York trading session. Until this news comes out, I believe the market will likely stay within its current range.
XAUUSD Context
I am keeping a close eye on the market as it approaches the resistance zone again. If the market shows a deceptive break at this point, I am ready to anticipate a downward trend. Additionally, there’s a chance the price might show a two-step retracement back towards the 2060 resistance level. Yet, even considering this possible retracement, I expect the price will make an effort to reach the low points it established on Wednesday.
XAUUSD Trading Idea for 5 January 2024
My focus is on the 2030.38 level. This is where I have set my support target. I am looking forward to seeing the price make its way down to this particular level soon.