XAUUSD market technical outlook

Daily chart:

Development of downswing of gold is in progress. Within easy reach there is the important psychological barrier of $1700 for a troy ounce. Given the big amplitude of decline, chances are for a corrective reversal that will be sponsored by the bears’ wish to lock in good profit for the first two months of 2021. 

H1-chart:

Within the local bearish structure a development of corrective upswing is in progress, which can get a cut at 1744.73. This level is the most attractive one for the sellers. Critical height of pullback is the latest local high 1759.47: growth above this level might break the whole mid-term construction of the market.

Conclusions:

Main scenario: Upward pullback to 1744.73 followed by decline to 1700.00.

Alternative scenario: Decline to 1700.00 and then a switch to upward correction in direction 1744.73.

Trading recommendations:

1. Longs to 1744.73.

2. Shorts from 1744.73 to 1700.00.

3. Pending longs from 1700.00.