XAUUSD Short: Supply Holding, $4,750 Demand as Target
Hello traders! Here’s a clear technical breakdown of XAUUSD (4H) based on the current chart structure. Gold previously traded within a well-defined ascending channel, where price respected both the rising support and resistance lines, forming a series of higher highs and higher lows. This structure confirmed sustained bullish momentum and healthy trend continuation. During this phase, pullbacks remained corrective, and buyers consistently defended the lower boundary of the channel, allowing price to gradually grind higher. The bullish move ultimately accelerated into a strong impulsive rally, which culminated at a clear pivot high, marking a temporary exhaustion of buying pressure. Following this pivot point, market structure shifted. Price broke below the ascending channel support and transitioned into a bearish corrective phase, signaling that bullish control was weakening.
Currently, XAUUSD is trading below the descending Supply Line, with price structure showing lower highs and failed recovery attempts. This suggests that the recent upward moves are corrective pullbacks rather than the start of a new bullish trend. Below current price, the Demand Zone around 4,750 stands out as the next major area of interest. This zone represents a strong historical demand level and aligns with prior consolidation, making it a logical downside target where buyers may attempt to step in.
My primary scenario favors further downside continuation as long as price remains below the descending supply line and below the 4,900 Supply Zone. Any rallies into this resistance area are viewed as potential selling opportunities rather than trend reversals. The main downside objective is the 4,750 Demand Zone (TP1), where partial profits can be considered and where a market reaction is likely