Trend Change
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Gold (XAUUSD) Price Forecast: Rally at Turning Point After Momentum Shows First Signs of Fatigue
FX Empire· 2026-01-27 14:20
Core Viewpoint - The market is showing signs of weakening momentum after a six-session rally, with critical price levels identified for potential shifts in trading strategy [2][3]. Price Levels and Market Dynamics - A trade above $5111.51 will reset the current market pattern, while a drop below $4990.21 could indicate further downside potential [1]. - If the low of $4990.21 fails to hold, the next target will be the 50% retracement level at $4824.00, followed by the uptrend line at $4703.52 if selling pressure continues [1]. Momentum Analysis - The current market is experiencing momentum shifts rather than a trend change, indicating a potential pullback rather than a downward trend [3]. - Traders are focused on identifying where the dip may end if momentum shifts occur, with key levels identified between $4824.00 and $4703.52 [3]. Trading Strategy Considerations - Traders have the option to buy strength above $5111.51 or wait for a pullback to the identified support levels of $4824.00 to $4703.52 [4]. - The decision to buy or wait is influenced by individual trading styles, with considerations for emotional factors such as Fear of Missing Out (FOMO) versus a value-oriented approach [4].