XAUUSD market had three bullish weeks in a row, eventually reaching a December high. However, the lack of a strong reaction indicates that we did not have the typical “bulls take the stairs, bears jump out of window” scenario from this level. The market tested the resistance zone around 2710-2720 and made a small pullback, and there is a possibility that it could break above this level on a fourth approach to this area.
The upcoming week coinciding with the US Presidential Inauguration is expected to bring uncertainty and perhaps potential sluggishness to the market. The market has broken above its descending channel, but price remains within the November range. On the daily timeframe, price closed above a triangle pattern, which is generally considered a trend continuation signal. If this trend continues, price could retest the November high or even last year's high. Conversely, if price returns to the channel, it could move towards the 2620 level, which we have already seen twice. Given these factors, next week could be either intriguing or boring.
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The gold market broke out and closed above its downward trendline, indicating a potential reversal. Recently, the market also made a fake breakout of the previous two days' lows, suggesting that the selling pressure has eased. The price has bounced off the previous resistance zone, which has now become a support level. I think that the market may attempt to form a spike and retest the zone between 2730 and 2740. Notably, the price remains near the resistance zone and above the 2700 level, which might indicate that the bears lack the strength to push the price below this level. My goal is resistance zone around 2740
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