12.10 XAUUSD European market analysis: High-level volatility accumulates strength, pullback layout presents good long opportunities
The core of a volatile market is to filter precise entry points and maintain a steady rhythm to grasp the trend bonuses firmly. Currently, gold maintains a high-level bullish volatile pattern, having pulled back from the previous high around 4259, quickly rebounding and stabilizing near 4170, confirming strong buying support below, while bearish pressure is weak. The current price around 4195 represents a technical correction within an upward trend, with key support unbroken, indicating solid bullish dominance.
Structurally, the gold price range is clear and controllable: the upper range of 4220-4250 serves as a phase resistance zone, while the lower range of 4170-4180 acts as the short-term core support. The short cycle has repeatedly tested the support without breaking down effectively, presenting a strong volatile characteristic of "slow pullback, quick rise," with a clear accumulation trend. Positive news resonates and supports the market, with CME Federal Reserve observation data indicating a 92% probability of a 25 basis point rate cut in December, as easing expectations continue to ferment and weaken the dollar's momentum. Coupled with global central banks' annual gold purchasing reaching new highs and heightened geopolitical uncertainties, mid-term support is solid, and downward space is significantly compressed.
Operational strategy (steady layout):
1. Gradually build long positions in the 4190-4195 range during pullbacks, with a stop loss below 4165 (to avoid extreme volatility risks). The first target is set at 4205-4215, with profits gradually reducing;
2. If volume stabilizes above 4215, increase positions in line with the trend, with the second target aiming at the 4220-4230 resistance level, betting on a breakout market;
3. Do not blindly chase highs in the short term; patiently wait if the entry range is not reached, adhering to a steady logic in wave trading.
Risk Warning: Market sentiment is cautious before the Federal Reserve's interest rate decision, and there may be short-term volatility magnification. Operate strictly with stop losses, and real-time market dynamics should be adjusted based on actual trading conditions.
