Gold Bulls Alert: Key Support Holds, XAU/USD Prepares for UpsideOverview:
The chart highlights recent price action in XAU/USD, with a potential bullish scenario following a consolidation phase. The key points of interest include a strong support zone and potential levels for price reversal and continuation.
Key Levels:
Support Zone: The shaded region around 2,736 indicates a significant support level, where price has bounced multiple times. This suggests a strong buying interest at this level, which could serve as a base for an upward move.
Resistance Zone: The horizontal line near 2,754 marks an immediate resistance level. If the price reaches this level, it may encounter selling pressure, leading to a potential short-term pullback.
Price Structure and Projections:
Consolidation at Support: Price has tested the support zone multiple times, showing signs of stability. This suggests that buyers are likely stepping in at this level, preventing further declines.
Possible Pullback: If price approaches the 2,754 resistance, a short-term pullback may occur. This is common as traders take profits, and sellers attempt to regain control at a previous high.
Bullish Breakout Scenario: If price successfully breaks above 2,754, it could signal a bullish breakout. In this case, the next move could target higher levels around 2,780 or beyond, as indicated by the upward arrow.
Conclusion:
Given the current structure, XAU/USD appears poised for a potential bullish reversal if support at 2,736 holds and price manages to break above the 2,754 resistance. Traders might consider waiting for a confirmed breakout or pullback as entry opportunities, with a cautious approach around key levels.
