XAUUSD at Critical Support – Bullish Continuation or Pullback 🔍 Market Overview
The chart shows a technical setup with clear support and resistance zones, alongside key Exponential Moving Averages (EMAs) to guide directional bias.
📊 Key Technical Levels
Resistance Zone: ~$3,445–$3,460
This is a historically reactive area where price has reversed sharply in the past. A breakout above this zone would suggest strong bullish continuation.
Strong Supporting Zone: ~$3,375–$3,390
Currently being tested. If the price holds here, it could act as a launchpad for a bullish move toward resistance.
Support Zone: ~$3,320–$3,340
If the strong support breaks, the next downside target would be this zone, which aligns with the 200 EMA (blue line) — a dynamic support level.
📈 Moving Averages
50 EMA (Red): Currently at $3,345.60, serving as a short-term dynamic support.
200 EMA (Blue): Currently at $3,304.13, marking a critical longer-term support. Price staying above this EMA reflects a bullish bias.
🔀 Probable Scenarios
Bullish Case (Preferred Scenario)
If price holds the strong supporting zone and breaks above current highs (~$3,395), it could rally toward the resistance zone at $3,445–$3,460.
Break and close above resistance may open the door for further upside continuation.
Bearish Case
A rejection from current levels or a break below $3,375 would likely lead to a retracement toward the support zone ($3,320–$3,340).
A break below the support zone and the 200 EMA would shift the structure into bearish territory.
✅ Bias & Recommendation
Current Bias: Cautiously Bullish
As long as the price remains above the strong supporting zone and 50 EMA, bulls have the upper hand.
Look for confirmation with a higher low or bullish engulfing candle before entering long.
Trade Idea:
Long Entry: On bullish confirmation above $3,395
Target: $3,445–$3,460
Stop Loss: Below $3,375 (support break)
