Gold Technical Analysis – Bullish Momentum Targeting 3165Chart Explanation:
This is a 4-hour chart of Gold Spot vs. U.S. Dollar (XAU/USD) published on April 10, 2025. It highlights a key technical setup with the following elements:
1. Support Zone (Blue): Around the 2,950 - 3,000 USD range. This area acted as a strong demand zone where price bounced upward after a sharp decline, indicating buyer interest.
2. Resistance Zone (Red): Near the 3,160 - 3,170 USD level. This area previously rejected upward momentum, making it a potential zone for price reaction again.
3. Recent Price Action:
Price had a strong rally from late March, creating higher highs.
It then experienced a correction down to the support zone.
The market reversed sharply from support, breaking out of the descending channel (red zone), and is now heading upward in a strong bullish leg (blue zone).
4. Target Price: The chart shows a bullish projection targeting 3165 USD, which aligns with the previous resistance zone.
5. Expected Move (Green Arrow): Suggests a possible minor pullback before continuing the bullish move towards the target.
Summary:
Gold is currently in a bullish phase after bouncing off support, and it's targeting the 3165 level. Traders may look for buying opportunities on pullbacks as long as price stays above the support zone.