XAU/USD: Consolidation Before Breakout – Bullish Move Ahead?
Gold (XAU/USD) is showing signs of breaking out from the downtrend channel, but further confirmation is needed to sustain its bullish momentum. Currently, two main scenarios could unfold:
1.Sideway Consolidation Before Rally: If gold maintains above the 2,881 - 2,894 zone, price may consolidate within this range before a breakout forms. A decisive move above 2,894 could pave the way toward 2,921.
2. Pullback to Support Before Rebounding: If XAU/USD fails to hold above 2,881, it may retest the strong support zone 2,860 - 2,870 to attract fresh buying interest. A strong reaction here could trigger a reversal and continue the recovery trend.
Trading Strategy:
Buy above 2,881, targeting 2,894 - 2,921, with a stop-loss below 2,870.
Buy on a pullback to 2,860 - 2,870, if support holds, with a stop-loss below 2,850.
Wait for a breakout above 2,894 to confirm stronger bullish momentum.
Beyond technical factors, President Donald Trump's speech at the U.S. Congress could significantly impact market sentiment. If the speech signals economic instability, gold may strengthen as a safe-haven asset. Conversely, a pro-USD stance could limit gold’s upside potential.
1.Sideway Consolidation Before Rally: If gold maintains above the 2,881 - 2,894 zone, price may consolidate within this range before a breakout forms. A decisive move above 2,894 could pave the way toward 2,921.
2. Pullback to Support Before Rebounding: If XAU/USD fails to hold above 2,881, it may retest the strong support zone 2,860 - 2,870 to attract fresh buying interest. A strong reaction here could trigger a reversal and continue the recovery trend.
Trading Strategy:
Buy above 2,881, targeting 2,894 - 2,921, with a stop-loss below 2,870.
Buy on a pullback to 2,860 - 2,870, if support holds, with a stop-loss below 2,850.
Wait for a breakout above 2,894 to confirm stronger bullish momentum.
Beyond technical factors, President Donald Trump's speech at the U.S. Congress could significantly impact market sentiment. If the speech signals economic instability, gold may strengthen as a safe-haven asset. Conversely, a pro-USD stance could limit gold’s upside potential.
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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.