Gold (XAU/USD) Short Trade Setup–Bearish Breakdown Below Support
Hello traders here's my New XAU/USD idea, what you think on it? share your thoughts in
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Technical Analysis:
The chart shows that Gold (XAU/USD) was previously trading in an ascending channel, maintaining a strong bullish trend.
However, after reaching the resistance zone near $2,970, the price faced strong selling pressure and broke below the support level around $2,865.
The breakdown of the support zone suggests a potential shift in market structure towards a bearish trend.
Chart Pattern & Market Structure:
The price has broken below the key support level, turning it into resistance.
A bearish rejection from this level confirms the possibility of further downside movement.
The target zone for this short trade is around $2,810, which aligns with previous demand zones and Fibonacci retracement levels.
Fundamental Perspective:
Stronger USD: If the U.S. Dollar continues to gain strength due to hawkish Fed policies, Gold prices may decline further.
Geopolitical & Inflation Risks: Any unexpected macroeconomic events could increase volatility, but the current trend favors a bearish bias.
Trade Idea:
Entry: Around $2,865 (after confirming resistance rejection)
Stop-Loss: Above $2,885
Take-Profit: $2,810
Risk-to-Reward Ratio: Favorable
Traders should monitor key economic events, especially U.S. inflation data and Fed speeches, for potential trend shifts. Always use proper risk management while trading
Follow me for more updates and don't forget to share my idea with your friends and family
Comment Section
Technical Analysis:
The chart shows that Gold (XAU/USD) was previously trading in an ascending channel, maintaining a strong bullish trend.
However, after reaching the resistance zone near $2,970, the price faced strong selling pressure and broke below the support level around $2,865.
The breakdown of the support zone suggests a potential shift in market structure towards a bearish trend.
Chart Pattern & Market Structure:
The price has broken below the key support level, turning it into resistance.
A bearish rejection from this level confirms the possibility of further downside movement.
The target zone for this short trade is around $2,810, which aligns with previous demand zones and Fibonacci retracement levels.
Fundamental Perspective:
Stronger USD: If the U.S. Dollar continues to gain strength due to hawkish Fed policies, Gold prices may decline further.
Geopolitical & Inflation Risks: Any unexpected macroeconomic events could increase volatility, but the current trend favors a bearish bias.
Trade Idea:
Entry: Around $2,865 (after confirming resistance rejection)
Stop-Loss: Above $2,885
Take-Profit: $2,810
Risk-to-Reward Ratio: Favorable
Traders should monitor key economic events, especially U.S. inflation data and Fed speeches, for potential trend shifts. Always use proper risk management while trading
Follow me for more updates and don't forget to share my idea with your friends and family
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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.