Examining the H1 chart closely, we can observe a small imbalance, often referred to as an "IRL" (Imbalance of Relative Liquidity), positioned just above the current price level. This imbalance represents an area where price has yet to fully fill, and it’s likely that once the gap is filled, there will be little to no resistance left to the upside. This suggests that any upward move will be short-lived, and the path of least resistance is likely to remain downward, in my opinion.
Shifting our focus to the H4 timeframe, we can clearly see a well-formed descending channel that has been guiding price action lower for some time. This channel indicates a strong bearish trend, with consistent lower highs and lower lows, reinforcing the idea that downward pressure is dominating the market. The structure of the channel suggests that this bearish momentum could continue for the foreseeable future.
Given the current price action and technical structure, I’m anticipating a sustained move to the downside for XAU/USD over the next few weeks. Based on this analysis, it seems likely that gold will target its next major support area, which lies around the 2980 level. This support zone should provide a crucial test for the market, and if it fails to hold, we could see further declines. However, for now, the overall trend suggests a continuation of the downward movement, and traders should be prepared for more bearish action in the near term.
Shifting our focus to the H4 timeframe, we can clearly see a well-formed descending channel that has been guiding price action lower for some time. This channel indicates a strong bearish trend, with consistent lower highs and lower lows, reinforcing the idea that downward pressure is dominating the market. The structure of the channel suggests that this bearish momentum could continue for the foreseeable future.
Given the current price action and technical structure, I’m anticipating a sustained move to the downside for XAU/USD over the next few weeks. Based on this analysis, it seems likely that gold will target its next major support area, which lies around the 2980 level. This support zone should provide a crucial test for the market, and if it fails to hold, we could see further declines. However, for now, the overall trend suggests a continuation of the downward movement, and traders should be prepared for more bearish action in the near term.
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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.