XAU/USD Analysis & Forecast: Key Levels, Market Sentiment, and Upcoming Opportunities

 

In the previous blog, I stated that the market would go down if it is so structured and I really hope that my reading would help in capitalizing on this detailed analysis and be able to make a good profit. Today, we turn to XAU/USD and discuss possible price action. First of all, let’s take a look at what’s happening at the moment The market has failed to break a key level of 2391.791 , from which the expected breakdown of this structure. The market is currently showing an upward movement on the daily and 4-hour charts. There is thus a high probability of an uptrend in the short and medium term. On the daily chart, we see that the candles are closing upward. This indicates massive buying power for the impending uptrend. If we go to the 4-hour chart, we will see higher highs and higher lows, suggesting a strong uptrend. For a clearer picture, let’s look at the 1-hour chart. Character H1 shows that the market is forming an uptrend here. Key levels are 2400.191, a demand from which purchases can be made if the price returns there. 

5-Minute Chart Insights 

When you trade the XAU/USD in a 5-minute timeframe, we recommend not to open any positions until there is a clear breakout and retest of the market. This method avoids trading against the market momentum so you can be on the right side of a pair. 

Trade Execution Strategy 

Breakout and Retest 

Breakout: The first thing to consider is that we require a major breakout of the current formation. It happened has a breakout and the price should do it in somthing Like this - with STRONG BULLISH OR BEARIST CANDLE!! 

Second test: Allow the market to break out, and afterwards wait for a retest on that same level of breakout. This retest typically serves as a more secure entry as the breakout is invalidated. Watch whether recent Support/Resistance is holding at this level for clues that the trend continues. 

Timing the Entry 

We anticipate that the market will void structure by going on to break this level before NY begins; Nonetheless, when the breakout happens within New York Session it is crucial to hunt for retesting on key levels previously trading.

Remember, we enter the market when the daily candle is large, and in the New York session, the candle should have at least half of its body formed. Before the start of the New York session, XAU/USD typically rises significantly, by about 0.50% to 0.70%.