GOLD → False breakout leads to counter-trend correction

9 Jan 2024

XAUUSD within the descending price channel forms a false break of support after which we see the strengthening, which began yesterday.



On the background of the downtrend the price forms a false breakdown of the level of 2031.8, after that during several hours the price fixes above this level, which forms a bullish position in the market. Within the current counter-trend correction, the price may reach the resistance of 2048 range or trend resistance. There are no important news that can affect the price today, most likely the price will continue its direction to the zone of interest, because above 2049 there is a large enough pool of liquidity. It is too early to talk about the trend change.

Support levels: 2030-2031
Resistance levels: 2039.3, 2049.3

The counter-trend correction may reach the mentioned trend zone. Further we should watch the price reaction to the mentioned resistance area as well as to the fundamental reasons, which can both break the trend and continue it

DXY MGC1! GC1!

Regards R. Linda!

9 Jan 2024

Nota

Zone 2035 is broken, but subject to retest.