XAUUSD technical analysis

XAUUSD technical analysis for January 3rd to January 7th 2022.

XAUUSD 1D key takeaways:

  1. XAUUSD has been in a long consolidation for the past months, but has made some noticable pivot pionts.
  2. Despite the fact that the 1.stochastic is overbought, 2.bearish engulfing candle, and is at a 3. strong resistance, possibly a 4.supply zone, #confluence; its still a strong possibility that price will fail to go all the way down and eventually push back to the upside and break the structure after a retracement.
XAUUSD technical analysis
XAUUSD_2022-01-04_(1D)

4H XAUUSD key takeaways:

  1. After making a double bottom price action pattern, price then started trending upward in the channel.
  2. The resistance of the channel (upper black line) along with the 1D structure (yellow area) created an area of confluence (red arrow) where price failed to break above.
  3. the bias of the market then change after touching the lower trendline of the channel; which is acting as a support.
  4. XAUUSD price rejection to the downside along, reversal candlestick patterns aong with a momentum candle to the upside.
  5. The stochastic is showing overbought, hence its possible that price might break to the upside.
XAUUSD technical analysis
XAUUSD_2022-01-04 (H4)

1H XAUUSD key takeaways:

  1. Considering the H4 analysis in mind, its a high probability that price will continue to the upside first before going down, if going down at all.
XAUUSD
XAUUSD_2022-01-04 (1H)

XAUUSD final thoughts

The current location of XAUUSD price is at a very risk area for either buy or sell, unless you have capital wto maintail a large stop loss. At this point price may go either direction. Even if entering a trade, it would be best not to be in it for the long term.

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