XAUUSD technical analysis
XAUUSD technical analysis for January 3rd to January 7th 2022.
XAUUSD 1D key takeaways:
- XAUUSD has been in a long consolidation for the past months, but has made some noticable pivot pionts.
- 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.
4H XAUUSD key takeaways:
- After making a double bottom price action pattern, price then started trending upward in the channel.
- 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.
- the bias of the market then change after touching the lower trendline of the channel; which is acting as a support.
- XAUUSD price rejection to the downside along, reversal candlestick patterns aong with a momentum candle to the upside.
- The stochastic is showing overbought, hence its possible that price might break to the upside.
1H XAUUSD key takeaways:
- 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 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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