Technical Analysis of XAU/USD (Gold) 4-Hour Chart
Trend Analysis: The chart shows a downtrend with lower highs and lower lows, as indicated by the descending trendline. Price is currently trading below this trendline, suggesting continued bearish pressure.
Support and Resistance Levels: Key support zones are marked around 2,650, 2,642, and 2,604. These levels could act as potential areas where buyers may step in if the price continues to decline.
Liquidity Voids: There’s a liquidity void around the 2,660 level, potentially a target area for buyers to push the price up to fill this void.
Potential Reversal Patterns: The dotted line projection suggests a possible reversal pattern with price testing lower levels before bouncing back up to the resistance area near 2,690.
Trade Idea: If price breaks above the descending trendline and the 2,684 resistance, a bullish move towards 2,710 or higher could occur. Conversely, failure to break above may see a continuation of the downtrend towards support at 2,610 or 2,604.
This analysis indicates potential for both short and long positions, depending on how the price reacts to the trendline and support/resistance levels.
Support and Resistance Levels: Key support zones are marked around 2,650, 2,642, and 2,604. These levels could act as potential areas where buyers may step in if the price continues to decline.
Liquidity Voids: There’s a liquidity void around the 2,660 level, potentially a target area for buyers to push the price up to fill this void.
Potential Reversal Patterns: The dotted line projection suggests a possible reversal pattern with price testing lower levels before bouncing back up to the resistance area near 2,690.
Trade Idea: If price breaks above the descending trendline and the 2,684 resistance, a bullish move towards 2,710 or higher could occur. Conversely, failure to break above may see a continuation of the downtrend towards support at 2,610 or 2,604.
This analysis indicates potential for both short and long positions, depending on how the price reacts to the trendline and support/resistance levels.
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