Gold continued trending up in the short term yesterday, and 20 January’s high was updated. The upper limit of the Target zone 2 — level 1850 — was also tested. However, the buyers failed to break that zone out.
The precious metal is currently trading in a correction whose target might be to test the Intermediary zone 1838 – 1837. I suggest considering new longs after the key support is tested, according to a pattern, with a target at yesterday’s high.
To go short, wait for the short-term trend’s reversal to the downside. To sell gold, the price must break out the level of 1837 and consolidate below.
Trading plan for XAUUSD for today:
Buy according to the pattern from Intermediary Zone 1838 – 1837.
StopLoss: According to pattern rules.