Gold (XAU/USD) 1-Hour Chart Analysis:
1. Key Resistance Zone:
– The price is currently near the $2,922-$2,930 resistance zone.
– This area has acted as a previous supply zone, indicating potential selling pressure.
2. Potential Price Scenarios:
Scenario 1: Rejection from Resistance & Downtrend
– If price fails to break above $2,922-$2,930, a rejection could send it lower.
– A break of the rising trendline could confirm bearish momentum.
– First target: Around $2,898-$2,900 (previous support zone).
– Second target: Around $2,873, which is a strong demand area.
– Final bearish target: Around $2,855-$2,846 if the momentum continues downward.
Scenario 2: Breakout Above Resistance & Bullish Move
– If gold breaks and closes above $2,930 with strong momentum, further upside is expected.
– First target:$2,945-$2,950, marked as the next resistance level.
– A successful breakout could lead to higher bullish continuation.
3. Trendline & Breakout Structure:
– The price had a previous breakout from a descending channel.
– The current bullish structure could be invalidated if the price breaks below the trendline and key support levels.
Trading Plan:
– Watch for price action at $2,922-$2,930 resistance.
– Look for a rejection confirmation (bearish candle patterns) for a potential short setup.
– For a buy position, wait for a strong breakout above $2,930 with a retest for confirmation.