XAUUSD A Healthy Reset Before Trend Continuation
Hello, Im Camila.
Observing the XAUUSD H4 chart, I believe the market is unfolding exactly as a technical correction within a well-defined uptrend. After price was rejected at the upper resistance of the ascending channel, gold deliberately pulled back to retest the channels dynamic support. This move should not be interpreted as a trend reversal, but rather as a natural and rational response following a steep and extended rally.
What stands out to me is how price behaves upon reaching the support zone. Selling pressure has not expanded further; instead, downside momentum has clearly slowed, accompanied by signs of supply absorption at the highlighted support area. This is classic price behavior in a healthy uptrend: the market retraces to lower levels to assess whether buyers remain committed to defending the underlying structure.
From a structural perspective, the ascending channel remains intact. Price has not broken below the lower boundary of the channel, and the entire pullback still falls well within acceptable corrective limits. This indicates that the medium-term bullish trend remains unbroken. I see no clear evidence of distribution at this stage; rather, the market appears to be undergoing a temporary rebalancing of supply and demand before the primary trend resumes.
My preferred scenario is for gold to stabilize and consolidate around the dynamic support zone, marked as a BUY area on the chart. If buying interest continues to emerge and price maintains its higher-low structure, the market is likely to form a technical rebound. From there, gold could move back toward a retest of the upper resistance zone previously highlighted. A decisive breakout above that area would confirm trend continuation and open the door to higher targets in the next phas