Hello everyone, here is my breakdown of the current $XAU USD setup.
Market Analysis
Gold previously traded inside an upward channel, forming higher highs and confirming bullish momentum. After reaching the top, price lost strength and entered a range. Following this, gold broke below the range and formed a bearish structure with lower highs.
Currently, price is approaching the 4,860 resistance zone, which aligns with a triangle resistance line, while holding above the 4,700 support zone. This creates a compression structure, indicating a potential breakout move soon.
My Scenario & Strategy
As long as XAUUSD remains below the 4,860 resistance, the bearish bias becomes valid. A rejection from this zone could push price toward the 4,700 support (TP1) as the next downside target. If bearish momentum increases, a break below 4,700 could lead to a deeper decline toward lower levels.
However, if price breaks and holds above 4,860, the bearish scenario would be invalidated and bullish continuation could follow.
That’s the setup I’m tracking. Thank you for your attention, and always manage your risk.
2 hours ago
Trade active
We see that the price of gold continues to decline and is currently approaching the ascending support line, where buyers may intervene. So we will monitor the market!
