XAUUSD: Traders Await Breakout

XAUUSD: Traders Await Breakout

2024-01-24 • Updated

Gold prices, currently near $2,030, saw a modest decrease of 1% over the past week and a 2% dip since the start of 2024. Meanwhile, silver surpassed $22 per ounce, experiencing a 4% drop in the week and a 6.5% decline in the year so far. Upcoming scrutiny of economic data, particularly the Q4 US GDP report on Thursday, will influence metal markets. Projections indicate a 2.4% growth, potentially allowing the Federal Reserve to maintain higher US interest rates amidst economic flexibility.

XAUUSD - D1 Timeframe

XAUUSDDaily-240124.png

The overall market structure on the Daily timeframe of XAUUSD appears to be largely bullish, however, since price failed to create a higher high before the onset of the retracement, I think that we may get to see a new lower low being formed. The 100-day moving average is my target.

XAUUSD - H4 Timeframe

 XAUUSDH4-240124.png

On the 4-hour timeframe of XAUUSD, price is set to break out of the wedge pattern. I expect price to break out lower since the three moving averages converge together to form a united resistance level whilst maintaining their bearish array. Overall, I will wait for the breakout of the trendline in other to position properly for a short entry.

Analyst’s Expectations: 

Direction: Bearish

Target: $1997.55

Invalidation: $2037.14

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

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