Gold (XAUUSD) 1H Analysis
Currently, gold is showing signs of a potential bearish reversal from a key supply zone. Price tapped into the previous high and reacted with strong rejection, suggesting weakening bullish momentum. This area aligns with a clear zone of interest, where sellers previously stepped in, adding confluence to our bearish bias.
The structure has been respected so far, and price has now broken below the minor trendline support, which previously acted as dynamic support for this bullish leg. A pullback to retest this broken structure or the imbalance zone just above could provide an optimal entry for further downside.
The trade idea is built on a potential shift in market structure:
A double top internal structure formation is visible at the recent high, indicating exhaustion in the uptrend.
Price is expected to push lower, targeting TP1, which sits at the previous strong support zone and aligns with the internal structure break.
Further continuation to the downside could take price toward the 0.5 FIB retracement level and PDL (Previous Day Low)—both strong liquidity areas.
We are anticipating a reaction from these lower zones. If bullish momentum reappears there, it may offer a chance to reposition for long setups later. For now, the bias remains bearish while price holds below the supply zone and structure confirms.
Currently, gold is showing signs of a potential bearish reversal from a key supply zone. Price tapped into the previous high and reacted with strong rejection, suggesting weakening bullish momentum. This area aligns with a clear zone of interest, where sellers previously stepped in, adding confluence to our bearish bias.
The structure has been respected so far, and price has now broken below the minor trendline support, which previously acted as dynamic support for this bullish leg. A pullback to retest this broken structure or the imbalance zone just above could provide an optimal entry for further downside.
The trade idea is built on a potential shift in market structure:
A double top internal structure formation is visible at the recent high, indicating exhaustion in the uptrend.
Price is expected to push lower, targeting TP1, which sits at the previous strong support zone and aligns with the internal structure break.
Further continuation to the downside could take price toward the 0.5 FIB retracement level and PDL (Previous Day Low)—both strong liquidity areas.
We are anticipating a reaction from these lower zones. If bullish momentum reappears there, it may offer a chance to reposition for long setups later. For now, the bias remains bearish while price holds below the supply zone and structure confirms.
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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.
Related publications
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.