XAU/USD 4hr Timeframe Analysis
Trend Analysis:
In the 4H timeframe, XAU/USD (Gold) is in an uptrend. However, the price has been in a semi-consolidation phase over the past few days, forming a range-bound market. Recently, the price broke above a previous resistance level and a solid trend line at 2,670, indicating a potential continuation of the uptrend.
Key Observations:
The price has broken out above the major resistance level, which has now become a key level for buyers to take advantage of.
The breakout was followed by a minor pullback, which is a common occurrence after a major level breakout.
We anticipate an accumulation phase above the major key level before the price moves down and breaks the major key level, liquidating all buyers' stop-losses.
Price Action Expectation:
https://www.tradingview.com/x/7b4JzaXC/
Our objective is to wait for the price to go below the major resistance level and wait for a liquidity grab. After that, we expect the price to move up again and break the resistance level. This will be the time to place our buy stop order.
Trade Setup: Buy Stop
Entry: 2,717.70 (above the resistance level)
Stop Loss: 2,683.10 (below the liquidity zone)
Take Profit: 2,783.10 (next resistance level)
Action Plan:
Wait for the price to go below the major resistance level.
Look for a liquidity grab, which will indicate a potential reversal.
Wait for the price to move up again and break the resistance level.
Place a buy stop order at 2,717.70.
Set a stop loss at 2,683.10.
Set a take profit target at 2,783.10.
Fundamental Analysis:
Gold buyers take a breather ahead of US PPI inflation data. Gold's price seems to have paused its four-day recovery stint in Asian trading on Thursday after hitting fresh five-week highs near $2,725. Traders assess the odds of US Federal Reserve (Fed) interest rate cuts next year amid the ongoing upsurge in the US Treasury bond yields across curve.
Trend Analysis:
In the 4H timeframe, XAU/USD (Gold) is in an uptrend. However, the price has been in a semi-consolidation phase over the past few days, forming a range-bound market. Recently, the price broke above a previous resistance level and a solid trend line at 2,670, indicating a potential continuation of the uptrend.
Key Observations:
The price has broken out above the major resistance level, which has now become a key level for buyers to take advantage of.
The breakout was followed by a minor pullback, which is a common occurrence after a major level breakout.
We anticipate an accumulation phase above the major key level before the price moves down and breaks the major key level, liquidating all buyers' stop-losses.
Price Action Expectation:
https://www.tradingview.com/x/7b4JzaXC/
Our objective is to wait for the price to go below the major resistance level and wait for a liquidity grab. After that, we expect the price to move up again and break the resistance level. This will be the time to place our buy stop order.
Trade Setup: Buy Stop
Entry: 2,717.70 (above the resistance level)
Stop Loss: 2,683.10 (below the liquidity zone)
Take Profit: 2,783.10 (next resistance level)
Action Plan:
Wait for the price to go below the major resistance level.
Look for a liquidity grab, which will indicate a potential reversal.
Wait for the price to move up again and break the resistance level.
Place a buy stop order at 2,717.70.
Set a stop loss at 2,683.10.
Set a take profit target at 2,783.10.
Fundamental Analysis:
Gold buyers take a breather ahead of US PPI inflation data. Gold's price seems to have paused its four-day recovery stint in Asian trading on Thursday after hitting fresh five-week highs near $2,725. Traders assess the odds of US Federal Reserve (Fed) interest rate cuts next year amid the ongoing upsurge in the US Treasury bond yields across curve.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.