XAU/USD 1H CHART PATTERN

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The chart you've shared is a 1-hour timeframe for Gold Spot vs. U.S. Dollar (XAU/USD). It shows a potential short (sell) trade setup based on a resistance level rejection.

Key Elements in the Chart:

Entry Line: 3345 (highlighted with a red arrow), acting as a resistance.

Target: 3320 (expected take-profit level).

Current Price: 3346.015, slightly above the entry line.


Interpretation:

The market has approached a previous resistance zone (around 3345), where it was previously rejected.

The chart suggests a short trade at this resistance, targeting a move back down to 3320.

This is a classic sell-the-resistance or mean-reversion strategy, likely assuming the price won’t break higher immediately.


Technical Perspective:

Resistance Zone: Clearly tested multiple times, suggesting strength.

Bearish Rejection Candle(s): Might be forming at the resistance level (although the chart doesn’t zoom in on the candles).

Target: 3320 is just above the minor support area from previous consolidation.


Caution:

If price breaks and holds above 3345, this setup would be invalidated (potential breakout scenario).

It would be prudent to place a stop loss just above the resistance (not shown, but essential).


Would you like help calculating position size, risk-reward, or potential breakout scenarios as well?

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