On 8 February, the gold currency pair, known as XAUUSD, showed some interesting movements. The market went up but did not hit the target level, missing it by just a few points. This currency pair formed a candlestick with a long tail. This means it reached higher than the peak from Monday, attracting more trading at that level, but then it turned around. Before this, traders had often decided not to buy or sell at this price, showing they didn’t agree on its value several times.
XAUUSD Context
Moreover, the market seemed to make a pattern that looks like a head and shoulders. This is important because it often indicates that the price might change direction.
When we look at the activities of the day on the chart, we notice something else significant. There was a false breakout from a pattern called an inside bar. This is a strong hint that the market might start moving in the opposite direction soon. Based on this, I think the price will go down to check the support level again. Depending on how prices move in the future, it might even go lower than that.
XAUUSD Trading Idea for 8 February 2024
My goal is to see if the price will reach a support level at 2024. This is where I think the price might stabilize or change its direction again.