On February 6th, the performance of the XAUUSD market matched my expectations very closely. As the price reached the zone I had considered for buying, I noticed a significant upward movement. This movement indicated a strong bounce at a crucial support level in the market. The 4-hour chart displayed this bounce as a pattern known as a tweezer bottom. Based on this pattern, I anticipate the market might continue its current behavior. It’s likely to fluctuate, moving up and down within this specific range. I expect this fluctuation mainly because the market seems to be waiting for new information to be released.
XAUUSD Context
However, if the market starts moving away from this support level, we could see a different kind of price movement. In such a scenario, the price might drop initially. After this drop, I expect it to rise again, potentially moving towards the recent highs observed in the market.
XAUUSD Trading Idea for 6 February 2024
My target is quite clear. I am aiming for the resistance zone, specifically at a price point of 2036.50.