XAU/USD Analysis – 1-Day Time Frame

XAU/USD Analysis – 1-Day Time Frame

Over the past month, XAU/USD has been bearish. However, we recently saw a reversal, with the price testing a key resistance zone at 2718. Following this, the price retraced sharply to 2608 before starting to climb again.

Potential Trade Setups:
Short Opportunity at 2675:
As the price approaches the 2675 resistance level, watch for a strong rejection signal, such as a prominent wick or a significant red candle. This could indicate a potential short opportunity.

Break and Retest for a Buy Opportunity:
If the price breaks through 2675 and closes above it, wait for a retest of this level as a new support zone. Once the price confirms this retest (e.g., through a strong doji or bullish candle), it may provide a favorable buy entry.

Important Notes:
Do not trade this idea blindly. Ensure there is proper confirmation before entering a position. Look for clear candlestick patterns, such as a doji, to validate your entry decision, whether for a long or short trade.

I hope this analysis helps in your trading journey. Don’t forget to like and comment for more ideas like this!