• Resistance Zone at 1821.42 • Significant Resistance Zone at 1846.90 • Seasonal Analysis shows DXY remains bullish in January at 60%. • No Divergence spotted. • As per analysis DXY is moving towards a bearish trend.
Bullish Indications
• Higher Highs and Higher Lows • Three White Soldiers • Significant Support Zone at 1814.11 • On a 1-day timeframe AB=CD where the D point is at 1881.27, indicating a reversal after price action reaches that point. • Gartley’s XABCD on 1 hr Time Frame Indicates a reversal in the area of 1815.98 • Seasonal Analysis shows XAUUSD remains Bullish in January 70% • On 4hr timeframe DXY has tested the horizontal Channel support line on several Occasions and breaking it down could start a new bearish trend.
• As per the nature of DXY and XAU are traditionally negatively correlated, When the Price of DXY goes down XAU's price goes up.
Strategy:
Entry Long: 1827.014 TP1: 1845.235 TP2: 1878.105 Stop Loss: 1804.90 Lot Size 0.04 x 2 Risk/Reward: 1:2.25