XAUUSD Price Action Analysis

Jan 16, 2021

Daily demand zone rejected the price, but it is weak reaction. The last pin may have consumed demand , Friday candle filled the pin. Any daily bars closing below 1827 may let the price to the lower lewels. First level to follow is r turned to s zone. Below it, there is fresh demand zone with an engulfing pattern.(1787/1777). Daily pennant was broken down and the target of the pennant is 1747 or much more lower, however I do not expect such a deep wave here. The momentum bars are south, therefore every rally in the price is sell chance till the price breaks the supply zone . If any daily bars closing above 1948 or 4h bars above 1865 may send the price to the supply zone . Key levels to follow : h1 timeframe 1888/1894 area. h4 timeframe 1906/1913, daily timeframe 1942/1950 supply zone . All these levels should be taken out for the price can make new highs. Another structure to follow is a bearish flag not yet occured. If the price rises lack of momentum and in a junk , that means pocket demand are consumed and seeks supply to drop. Beware of momentum switch in higher timeframes.And also follow dxy to test 92.80/93.20 band. That is all for now. Good luck...