XAUUSD: Buyers Defend Support, Retest of 4,490 Resistance
Hello everyone, here is my breakdown of the current XAUUSD setup.
Market Analysis
Gold previously traded under pressure near a descending triangle resistance line, where price action was compressed before buyers stepped in. After forming a solid base, XAUUSD broke above the triangle resistance and confirmed a bullish structural shift. This breakout initiated a steady upside move, supported by a rising trend line and a clear sequence of higher highs and higher lows. Following the initial breakout, price entered a range, signaling temporary consolidation and accumulation. Buyers eventually gained control again, leading to a clean breakout above the range and continuation higher. This move brought gold into the key Resistance Zone around the 4,4904,520 area, where price was recently tested and met with strong selling pressure.
Currently, after the rejection from resistance, XAUUSD pulled back sharply but found demand near the Support Zone around 4,310, which aligns with a previous breakout level and the rising support line. The current price action shows a corrective pullback rather than a full trend reversal, with buyers stepping in to defend this support area. The structure remains constructive as long as price holds above this key demand zone.
My Scenario & Strategy
My primary scenario: as long as XAUUSD holds above the 4,310 Support Zone and respects the rising support line, the bullish bias remains intact. I expect buyers to continue defending this area and attempt another push toward the 4,490 Resistance Zone as the next upside objective.
However, a decisive breakdown below support would weaken the bullish structure and open the door for a deeper corrective move. Until that happens, the overall structure favors continuation to the upside after consolidation