Gold- Levels to watch for the next 500+ pips move
As previously discussed, 
XAUUSD had a rough start to the year, experiencing a decline of approximately 600 pips. However, bulls successfully halted this descent precisely at the support zone from 2020.
Since reaching Monday's low, the price has entered a consolidation phase, fluctuating between distinct levels of support and resistance.
This prompts a crucial question for swing traders targeting moves of 500 pips or more: What is the likely direction from here?
On one hand, there is evidence of a reversal from support. Considering the overall bullish trend, one could anticipate a resumption of the trend with a potential test of the 2080 resistance and, possibly, a surpassing of the 2100 mark.
It's essential to note, however, that achieving this scenario requires confirmation, specifically a clear break above the 2040 level.
On the other hand, a breach below the 2020 support exposes the recent lows around 1980. More significantly, such a move would signify the establishment of a lower high in the start of the year price and, potentially lead to a further decline to 1930.
P.S: At this moment I hold a buy trade with only 50% of my usual volume and, as explain, I am waiting for a clearer picture
Best of luck!
Mihai Iacob
XAUUSD had a rough start to the year, experiencing a decline of approximately 600 pips. However, bulls successfully halted this descent precisely at the support zone from 2020. Since reaching Monday's low, the price has entered a consolidation phase, fluctuating between distinct levels of support and resistance.
This prompts a crucial question for swing traders targeting moves of 500 pips or more: What is the likely direction from here?
On one hand, there is evidence of a reversal from support. Considering the overall bullish trend, one could anticipate a resumption of the trend with a potential test of the 2080 resistance and, possibly, a surpassing of the 2100 mark.
It's essential to note, however, that achieving this scenario requires confirmation, specifically a clear break above the 2040 level.
On the other hand, a breach below the 2020 support exposes the recent lows around 1980. More significantly, such a move would signify the establishment of a lower high in the start of the year price and, potentially lead to a further decline to 1930.
P.S: At this moment I hold a buy trade with only 50% of my usual volume and, as explain, I am waiting for a clearer picture
Best of luck!
Mihai Iacob
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