DAILY FOREX ANALYSIS
Timeframe H4 and H1
As mentioned earlier in my post. I have noticed that a very big buyer has been hiding within the recent price action of XAUUSD. The buyer has shown his momentum today by breaking out a 2 week consolidation upward channel range to a high of 1485.470 today, but was knocked down by the seller by a 50% retracement. Overall, we are still expecting XAUUSD to make another day timeframe retracement to 1469 range and 1458 range before going breaking the high of 1557.077 recorded on 2 September 2019.
What do we expect from now? You can see that since the slight higher high created by XAUUSD on the 23rd December 2019, a rising wedge pattern has been created. The higher high that has been created has not officially confirmed that there is a high possibility that XAUUSD is ready for a price correction and will do a retracement very soon to the range of 1469 and 1458 respectively.
For those who are scalping, it would be generally safe to scaple within the rising wedge. However, for the many sellers who have placed in their Sell Trades between the range 1477 to 1481, even XAUUSD might not probably reach to lows of 1477 on the Eve of Christmas, you will still have a chance to recover or breakeven when XAUUSD breaks the rising wedge. As long as your account is able to hold the trade for those trading with no risk management, you can consider holding.