XAU/USD (Gold vs US Dollar) Intraday Chart Analysis
Pattern: Symmetrical Triangle
Timeframe: 45-Minute
Date: May 4, 2025
🔷 Technical Chart Pattern: Symmetrical Triangle
The price action in XAU/USD has formed a symmetrical triangle pattern, which typically represents a phase of market consolidation and indecision between buyers and sellers. This triangle is characterized by:
Lower highs, showing weakening bullish momentum.
Higher lows, showing temporary buyer support.
Converging trendlines, indicating tightening price action and reduced volatility.
As price approaches the apex of the triangle, a breakout becomes more likely. In this case, price action has broken below the triangle’s support, suggesting a bearish continuation setup.
🧱 Key Technical Levels
Level Type Price Area Explanation
Resistance 3,295 – 3,305 Upper triangle boundary and recent swing highs; failed breakout attempts.
Support 3,215 – 3,220 Lower triangle boundary, recently breached. Now a potential resistance on retest.
Current Price 3,240.950 Trading between the broken support and TP1. Short-term correction observed.
🔻 Trade Setup – Bearish Bias
The chart shows a potential bearish breakdown after the triangle was violated to the downside. The price retested the broken support (now resistance) and formed a lower high, validating further downside momentum.
🔹 Entry Signal
Breakdown of the triangle support zone (~3,215).
Bearish confirmation candle with increased selling volume.
Retest and rejection at former support.
🔹 Trade Parameters
Element Level
Entry On confirmed breakdown and retest rejection (~3,235–3,240)
Stop Loss 3,312.763 – Above triangle resistance and prior swing highs
Take Profit 1 (TP1) 3,195.761 – Closest swing low and reaction zone
Take Profit 2 (TP2) 3,159.597 – Measured move target based on triangle height
📉 Indicators & Confirmation
Woodies CCI (6,14):
Currently at -16.218, in bearish territory, supporting short positions. No bullish divergence seen, reinforcing continuation bias.
Price Action:
Bearish impulse legs are longer and sharper than corrective moves upward. Lower highs continue to dominate, confirming the downtrend structure.
Volume (recommended to monitor live):
Look for increased volume on breakdown candles for confirmation. Decreasing volume on retracements suggests weak bullish pullbacks.
⚠️ Risk Management and Considerations
This setup is short-term and highly reactive to intraday volatility. News events related to USD strength, interest rates, or inflation can create sudden reversals.
Traders should consider scaling out at TP1 and letting partial positions run toward TP2.
Watch for potential false breakouts—wait for candle closure and possibly retest failure for confirmation.
✅ Conclusion
The XAU/USD pair is setting up for a bearish move after a confirmed breakdown from a symmetrical triangle on the 45-minute chart. With defined support and resistance, clear risk management levels, and a favorable risk-to-reward ratio, this setup is ideal for short-term traders looking to capitalize on momentum.
Pattern: Symmetrical Triangle
Timeframe: 45-Minute
Date: May 4, 2025
🔷 Technical Chart Pattern: Symmetrical Triangle
The price action in XAU/USD has formed a symmetrical triangle pattern, which typically represents a phase of market consolidation and indecision between buyers and sellers. This triangle is characterized by:
Lower highs, showing weakening bullish momentum.
Higher lows, showing temporary buyer support.
Converging trendlines, indicating tightening price action and reduced volatility.
As price approaches the apex of the triangle, a breakout becomes more likely. In this case, price action has broken below the triangle’s support, suggesting a bearish continuation setup.
🧱 Key Technical Levels
Level Type Price Area Explanation
Resistance 3,295 – 3,305 Upper triangle boundary and recent swing highs; failed breakout attempts.
Support 3,215 – 3,220 Lower triangle boundary, recently breached. Now a potential resistance on retest.
Current Price 3,240.950 Trading between the broken support and TP1. Short-term correction observed.
🔻 Trade Setup – Bearish Bias
The chart shows a potential bearish breakdown after the triangle was violated to the downside. The price retested the broken support (now resistance) and formed a lower high, validating further downside momentum.
🔹 Entry Signal
Breakdown of the triangle support zone (~3,215).
Bearish confirmation candle with increased selling volume.
Retest and rejection at former support.
🔹 Trade Parameters
Element Level
Entry On confirmed breakdown and retest rejection (~3,235–3,240)
Stop Loss 3,312.763 – Above triangle resistance and prior swing highs
Take Profit 1 (TP1) 3,195.761 – Closest swing low and reaction zone
Take Profit 2 (TP2) 3,159.597 – Measured move target based on triangle height
📉 Indicators & Confirmation
Woodies CCI (6,14):
Currently at -16.218, in bearish territory, supporting short positions. No bullish divergence seen, reinforcing continuation bias.
Price Action:
Bearish impulse legs are longer and sharper than corrective moves upward. Lower highs continue to dominate, confirming the downtrend structure.
Volume (recommended to monitor live):
Look for increased volume on breakdown candles for confirmation. Decreasing volume on retracements suggests weak bullish pullbacks.
⚠️ Risk Management and Considerations
This setup is short-term and highly reactive to intraday volatility. News events related to USD strength, interest rates, or inflation can create sudden reversals.
Traders should consider scaling out at TP1 and letting partial positions run toward TP2.
Watch for potential false breakouts—wait for candle closure and possibly retest failure for confirmation.
✅ Conclusion
The XAU/USD pair is setting up for a bearish move after a confirmed breakdown from a symmetrical triangle on the 45-minute chart. With defined support and resistance, clear risk management levels, and a favorable risk-to-reward ratio, this setup is ideal for short-term traders looking to capitalize on momentum.
Related publications
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.
Related publications
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.