XAUUSD (gold) is hovering around a critical level today at $2,025, which could play a pivotal role next week.
In today’s video, I share what to watch into today’s close and how that could influence gold’s direction next week.
We also talk key levels, targets, and the latest on the US Dollar Index (DXY).
Watch the video below and scroll down for the annotated charts and analysis.
XAUUSD remains sideways after last year’s failed attempt to break $2,080 resistance.
We got a new all-time high for gold on December 4th, but bulls failed to hold the price above that mark into the daily close.
Since then, we’ve seen lower highs from XAUUSD, hinting at further downside for the metal.
Furthermore, gold broke its November trend line on Wednesday.
Today’s session might look bullish, but it’s important to remember that the daily close is critical when analyzing the daily charts.
Additionally, today’s session could be a mere sweep of the imbalance created from the January 16th selling.
Today’s session for XAUUSD even tested the 0.618 Fibonacci perfectly, as shared with Daily Price Action VIP members at the time.
I also shared my $2,038 short entry on XAUUSD with VIP members this morning.
Considering the price action so far today, I won’t let that trade go negative, so it’s already a risk-free trade.
What will be critical for XAUUSD next week is where the market closes today relative to $2,025.
That’s the trend line from November 10th that gold broke below earlier this week.
A convincing break below that today could signal lower gold prices next week, possibly toward $1,975 and $1,930.
Alternatively, a weekly close above $2,025 would show strength for XAUUSD and expose the recent $2,060 highs and potentially the $2,075 macro resistance.
The DXY is also a critical factor for gold, especially as the dollar fights with 103.50 resistance.
The dollar’s price action today may also tell us more about gold, given the inverse correlation between the two.
Watch the video above for more details, including DXY key levels to keep on your radar.
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