Gold Breakout Retest Targeting $3,454 After Support Hold

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Technical analysis of the Gold Spot price (XAU/USD) on the 1-hour timeframe, and it outlines a bullish trade idea with clear technical indications. Here’s a breakdown of the idea and key elements:


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📈 Technical Analysis Overview

1. Support Level Zone (Highlighted)

A horizontal zone has been marked as a support level, around the 3,360 – 3,370 range.

This level previously acted as resistance and now may act as support after a breakout — classic example of role reversal.


2. Breakout Confirmation

Price has broken above the previous resistance area (now support), indicating a bullish breakout.

After the breakout, price is showing consolidation or a retest, suggesting potential continuation.


3. Moving Averages

The 50 EMA (red) is above the 200 EMA (blue), indicating a bullish trend.

Price is also trading above both EMAs, adding further confidence to the bullish bias.


4. Target Point

The analyst has projected a target at 3,454.171, which is a 2.73% move (91.6 points) from the breakout level.

This target likely corresponds to a previous high or a measured move projection.



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✅ Bullish Bias Justification

Breakout and Retest: Price has broken above resistance and is now retesting it as support — a strong bullish continuation signal.

Trend Confirmation: Price is above both EMAs, and the EMAs are in a bullish alignment.

Volume and Momentum: Although not shown, the sharp upward move suggests strong momentum.



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📌 Potential Strategy

Entry: Near current price (~3,381), ideally after confirmation of the support hold.

Stop-Loss: Below the support zone, possibly around 3,350–3,360.

Target: 3,454.171 as shown, giving a decent risk-reward ratio.



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⚠️ Risks & Considerations

False Breakout: If price fails to hold above the support zone, the breakout may be invalidated.

Overbought Conditions: After a sharp rise, some pullback is possible before continuation.

News Events: Be cautious of any major economic announcements, especially related to USD or gold.



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🧠 Final Thoughts

This idea is a classic breakout and retest setup, backed by a strong trend. The analysis looks technically sound, and the price action is aligning with bullish continuation. However, ensure you manage risk properly and monitor for any signs of reversal around the support zone.



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