This Gold to Euro (XAU/EUR) 4-hour chart shows a breakout from a descending channel, followed by a strong bullish rally. The price has now reached a key resistance zone, where sellers might step in to push prices lower.
Key Observations:
Downtrend Channel Breakout: The price was previously moving in a downward sloping channel but has now broken out, signaling bullish momentum.
Resistance Zone: The price is currently testing a significant resistance level, indicated by the marked "Sell" area.
Potential Reversal: If selling pressure increases at this resistance, we could see a price decline toward the identified target support zones.
Key Support Levels:
First Target Zone: Around 2,750 EUR
Second Target Zone: Near 2,675 EUR
Trading Plan:
Sell Setup: Look for bearish confirmation (such as rejection wicks or a lower high formation) before entering a short position.
Stop Loss: Above the resistance zone to avoid false breakouts.
Take Profit: Based on the highlighted support areas.
If bulls continue pushing beyond resistance, it could invalidate the sell setup, leading to further upside movement. Traders should monitor price action closely for confirmation.
Key Observations:
Downtrend Channel Breakout: The price was previously moving in a downward sloping channel but has now broken out, signaling bullish momentum.
Resistance Zone: The price is currently testing a significant resistance level, indicated by the marked "Sell" area.
Potential Reversal: If selling pressure increases at this resistance, we could see a price decline toward the identified target support zones.
Key Support Levels:
First Target Zone: Around 2,750 EUR
Second Target Zone: Near 2,675 EUR
Trading Plan:
Sell Setup: Look for bearish confirmation (such as rejection wicks or a lower high formation) before entering a short position.
Stop Loss: Above the resistance zone to avoid false breakouts.
Take Profit: Based on the highlighted support areas.
If bulls continue pushing beyond resistance, it could invalidate the sell setup, leading to further upside movement. Traders should monitor price action closely for confirmation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.