Gold (XAUUSD) prices have once again approached the supply zone around $2,483.00, a level that has consistently resisted upward movement since July. This resistance has led to the formation of an ascending triangle, indicating that a breakout is necessary for the continuation of the upward trend.
The irregular market structure since July underscores a lack of sustained bullish momentum. The failure of swing highs and lows to align properly has resulted in a consolidation phase.
After reaching the resistance level at $2,483.00 in July, the price dropped to a low near $2,356.00. Subsequent price action has struggled to break past previous highs or lows, indicating indecision in the market. However, a bullish trendline anchored to the higher lows suggests the potential for a retracement and the possible continuation of the uptrend.
Gold Short-Term Trend: Ranging
On the 4-hour chart, a triple top pattern has formed at $2,484.00, highlighting the strength of the resistance zone. The price has since retraced into a bullish order block, presenting a potential setup for continued upward movement. If the order block fails to hold, the bullish trendline may offer additional support.
Given the current market conditions, where there is no clear dominant trend, this environment may be more suited to scalping rather than swing trading. Traders should remain alert and use forex signals to identify short-term opportunities.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OkPrivacy policy
