XAU/USD Daily Chart Analysis! Detailed ExplainationMarket Overview:
Gold (XAU/USD) is currently trading around $2,910, showing a slight decline of -0.05% on the daily timeframe. The market has been in a strong uptrend, breaking previous structures and forming higher highs and higher lows. However, the current price action suggests a potential pullback before another bullish continuation.
Key Technical Observations:
1. Resistance & Strong Resistance Zone ($2,950 - $3,000+)
The price has reached a strong resistance zone near the $3,000 psychological level, where selling pressure is evident.
A weak high has been marked, indicating that buyers may attempt to break this level, but sellers could push the price down before any significant breakout.
If price successfully closes above this resistance, it could trigger further bullish momentum towards $3,100 or higher.
2. Support and Demand Zone ($2,750 - $2,800)
The demand zone between $2,750 and $2,800 has historically acted as a strong support level.
This zone aligns with previous price accumulation and a key structural support level.
A pullback to this area could present buying opportunities, as institutional buyers may step in.
3. Market Structure and Breaks of Structure (BOS) & Change of Character (ChoCH)
Multiple Change of Character (ChoCH) points have been noted, signaling shifts in momentum.
The Break of Structure (BOS) suggests a continuation of the prevailing bullish trend, with minor corrections along the way.
The most recent ChoCH indicates a potential short-term bearish retracement before a continuation to the upside.
4. Strong Low and Potential Support Levels ($2,500 - $2,600)
The strong low is marked below $2,500, which acts as a long-term support zone.
If the demand zone at $2,750 - $2,800 fails, the next major support area lies around $2,600.
However, given the overall bullish trend, a drop to these levels would likely be short-lived unless macroeconomic factors shift significantly.
Potential Price Scenarios:
🔵 Bullish Scenario (Primary Outlook)
Price may retrace towards the $2,750 - $2,800 demand zone.
If buyers defend this level, we can expect a bullish reversal towards $2,950 - $3,000 resistance.
A strong breakout above $3,000 would likely trigger further upside momentum towards $3,100+.
🔴 Bearish Scenario (Alternative Outlook)
If sellers take control and push price below the $2,750 support, further downside could follow.
In this case, the next major support levels would be $2,600 - $2,650, where buyers may re-enter.
A breakdown below $2,500 would signal a shift in long-term market structure, invalidating the bullish trend.
Trading Plan & Strategy:
✅ For Long Entries:
Look for bullish price action (e.g., pin bars, bullish engulfing candles) in the $2,750 - $2,800 demand zone.
Target $2,950 - $3,000 as the first take-profit level.
If price breaks above $3,000, hold positions for a move towards $3,100 or higher.
❌ For Short Entries:
If price struggles to break above $3,000, short positions can be considered with stop losses above resistance.
Targets for short trades: $2,800 (first TP), $2,650 (second TP).
Final Thoughts About Trend:
Gold remains in a strong bullish trend, but a short-term retracement could be expected before the next rally. Traders should focus on key levels like $2,750 - $2,800 support and $3,000 resistance to confirm the next move. Watch for confirmation signals before entering trades. 📊🚀
