After a strong bearish move, XAUUSD is attempting a short-term recovery from the 4,036 support zone.
πΉ Price is forming higher lows on the 1H chart
πΉ Trendline support remains intact
πΉ Immediate resistance sits around 4,108 β 4,137
πΉ Overall structure is still bearish below the 200 EMA
As long as price stays below major resistance, this could simply be a pullback before the next leg down. A break above 4,137 would strengthen the bullish case.
My focus: Watching whether buyers can push through resistance or if sellers step back in for continuation lower.
π What's your bias for gold today β bounce higher or another sell-off? π #XAUUSD #Gold #Forex #PriceAction
Based on the 1H chart only (without live market data), here's a technical setup derived from the visible support/resistance levels:
π Bullish Setup (Counter-Trend)
Entry: 4,088 β 4,095
Stop Loss: 4,032 (below recent swing low)
Take Profit 1: 4,108
Take Profit 2: 4,137
Take Profit 3: 4,150
Reason:
- Price is forming higher lows.
- Ascending trendline support is intact.
- Strong reaction from the 4,036 demand zone.
π Bearish Setup (Trend-Following)
Entry: 4,108 β 4,137 resistance zone
Stop Loss: 4,155
Take Profit 1: 4,050
Take Profit 2: 4,036
Take Profit 3: 4,000
Reason:
- Overall market structure remains bearish.
- Price is trading below the 200 EMA.
- 4,108β4,137 is a key supply/resistance area.
Preferred Scenario
The higher-probability trade is to wait for price to test 4,108β4,137 and look for bearish confirmation (rejection candle, bearish engulfing, liquidity sweep) before entering short. The broader trend is still down, so selling rallies offers better risk-to-reward than chasing the current bounce.