Lingrid | GOLD Weekly Market OUTLOOK

The month of January can be described by one picture below. In general, the price of XAUUSD was very choppy. It fluctuated back and forth throughout the month. In terms of months, January closed in a bearish mood. We can see that the price action formed an inside bar pattern. However, on the weekly timeframe, we see a fake-out of the inside bar. The bears took liquidity at the two-week highs and pushed the price lower, but it did not go lower and pulled back from support.

After the news on Friday, the price fell below the previous two-day lows and bounced back. Overall, I expect the market to continue to fluctuate as it has not yet broken out of the range zone. Given that the DXY has reached a resistance zone, we can expect some pullback from it, which will be reflected in gold. Although it has moved out of the range boundaries, this could turn out to be a false breakout. On the 4H timeframe we have a big bearish candle which stopped falling at 2030 level. There was a similar movement at the beginning of January - a strong fall and a pullback, which turned into a sideways movement. Pay attention to the 2030 and 2050 levels as the price narrows between these levels.

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Comment:

As we can see, there is a lot of rejection at the 2020–2030 support levels. On the 1H timeframe, XAUUSD formed a lower high, and it's forming a 1-2-3 move. I expect some rejection at the support level and to buy confirmation. If it goes below the 2020 support level, the next area to pay attention to is near 2000. Because the market is moving sideways, you can see that it grabs liquidity above or below the highs and then moves in the opposite direction. If the market forms a rejection candle, such as a long-tailed bar, I think bulls will try to push the price towards the local high at 2040. My goal is the resistance zone at 2038.50.

Comment:

The price perfectly fulfilled my last idea. It reached the buying area. XAUUSD market rebounded from the strong support level. The price formed tweezer bottom on the 4H timeframe. I think the market might just keep moving back and forth in the range zone as it did before, right at these price levels, in anticipation of the next news release. However, if the market rejects the support level, a complex pullback may be formed. I expect the price to pull back down and go upward to local highs. My goal is the resistance zone at 2036.50

Trade closed: target reached:

The take profit level of today's post above was reached

Comment:

The price perfectly fulfilled my last idea. The price bounced off the support level and hit the target level. XAUUSD is ranging after it returned to the range zone. It might continue ranging because the price is in the inside bar pattern on the daily timeframe. It could be a bullish move if the market retests the support level. Alternativly, we can expect the choppy market. I think the price might grab liquidity below the big bullish candle and then move higher. My goal is the resistance zone around 2047