XAU/USD (4H) | FX | Gold Spot vs US Dollar
🔴 SHORT BIAS
📅 Updated: July 18
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🔍 Description
Gold is trading within a bearish contracting triangle, suggesting a continuation move to the downside after the recent corrective bounce. Price is currently approaching the key 3,371–3,376 resistance zone, which aligns with the 78.6% Fibonacci retracement and upper triangle boundary.
This resistance confluence could mark the termination of the (E) wave of the triangle, paving the way for a larger downward thrust. A confirmed break below 3,302 would open the door toward 3,221 as the next major target.
The structure also leaves room for a minor internal triangle (a)-(b)-(c)-(d)-(e) pattern within the broader range, reinforcing the bearish setup.
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📊 Technical Structure (4H)
✅ Bearish contracting triangle: (A)-(B)-(C)-(D)-(E)
✅ 78.6% Fibonacci + supply zone = ideal rejection point
✅ Internal triangle projection aligns with lower support test
📌 Downside Targets
Target 1: 3,302.47
Target 2: 3,221.78
🔻 Invalidation: Above 3,376.03
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📈 Market Outlook
Macro View: Rising real yields and cooling inflation reduce gold’s appeal
Fed Watch: Hawkish tone supports USD, weighing on XAU
Technical View: Structure favors downside break from triangle formation
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⚠️ Risks to Bias
Break and daily close above 3,376.03 invalidates triangle structure
Sudden risk-off sentiment or dovish Fed shift could boost gold demand
Sharp reversal in dollar strength
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🧭 Summary: Bearish Breakout Setup Forming
XAU/USD is completing a bearish triangle structure, with price sitting just below resistance. A rejection from the 3,371–3,376 zone can trigger a breakout lower, first toward 3,302, then extending to 3,221. As always, confirmation and tight risk control are key.
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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.