GOLD → Resistance Retest. What is the chance of a short-squeeze?

29 janv. 2024

XAUUSD has been testing trend resistance since the opening of the session. At the same time, the dollar index continues to consolidate, but within the upward trend.



Regarding the trend resistance XAU we observe a retest, if we pay attention to the volumes, they are absent. What is the probability of a short-squeeze in such a case?
The market may go from local downward movement to a sideways phase, as evidenced by the unclear market environment and global flat trading in the whole forex.
The new range in gold could be: 2035-2020, or 2060-2020.
There is an important resistance ahead - 2035, which may be of interest to the market maker because there is a huge pool of liquidity above it, which can be determined by the volume profile.

Resistance levels: 2035, 2039.4
Support levels: 2020, 2010

At the moment it is worth looking at the resistance at 2035 and 2039.4.
* A false break of the lower one will generate signals for the continuation of the range formation. In this case, the price will head towards the support.
* But a breakthrough and price consolidation above 2039.4 will form a signal for the continuation of growth to 2040-2060.

DXY GC1! GOLD MGC1!

Regards R. Linda!

29 janv. 2024

Note

We were ready
False breakdown 2035
Short-squeeze amid lack of volumes
as a result - a strong drop of 140 pips

29 janv. 2024

Trade fermée: cible de profit atteinte

Falling after a false breakdown
The move gives us almost +160 pips
The first target of 2020 has been reached

29 janv. 2024

Note

29 janv. 2024

Note

Price continues to form a range.
After a false breakout of resistance the market may get a new target in the form of 2010 support