Gold Dippin' and Flippin' – Are We Goin’ for the Top or Not?
Let's break down the XAU/USD (Gold) charts from a top-down perspective, starting with the daily, 4-hour, 2-hour, and 1-hour views. This will give us a full picture of the market structure and potential trade setups.
Starting with the daily chart, we can see that Gold is sitting around the $2,660 level, which is a key resistance zone. It recently rejected from just under $2,670, showing sellers stepping in at this point. The 21-day EMA is still providing some support at around $2,600, so that will be a level to keep an eye on for potential pullbacks.
On the 4-hour chart, Gold has been respecting the 21 EMA, but it’s currently in a consolidation phase after the recent push up to resistance. The $2,661-$2,663 area is important to watch as it’s acting as a short-term pivot. A break above $2,673 could signal continuation to the upside, but if price fails to hold above the current support levels, we could see a retest of $2,633.
Now, on the 2-hour and 1-hour charts, Gold is consolidating after a sharp move, with potential for a pullback. I’m looking for either a retest of the $2,650-$2,652 zone for a potential buy entry or a clear break of the $2,673 resistance for continuation buys. If price drops further, I would watch the $2,633 area for potential buying opportunities.
The key here is to watch how Gold reacts to these levels, especially on the lower timeframes, for confirmations of either a break or a bounce. I'm biased towards a long setup if price holds above the support zones, but if it breaks below $2,650, we might shift to a neutral or bearish stance until further structure confirms otherwise.
Starting with the daily chart, we can see that Gold is sitting around the $2,660 level, which is a key resistance zone. It recently rejected from just under $2,670, showing sellers stepping in at this point. The 21-day EMA is still providing some support at around $2,600, so that will be a level to keep an eye on for potential pullbacks.
On the 4-hour chart, Gold has been respecting the 21 EMA, but it’s currently in a consolidation phase after the recent push up to resistance. The $2,661-$2,663 area is important to watch as it’s acting as a short-term pivot. A break above $2,673 could signal continuation to the upside, but if price fails to hold above the current support levels, we could see a retest of $2,633.
Now, on the 2-hour and 1-hour charts, Gold is consolidating after a sharp move, with potential for a pullback. I’m looking for either a retest of the $2,650-$2,652 zone for a potential buy entry or a clear break of the $2,673 resistance for continuation buys. If price drops further, I would watch the $2,633 area for potential buying opportunities.
The key here is to watch how Gold reacts to these levels, especially on the lower timeframes, for confirmations of either a break or a bounce. I'm biased towards a long setup if price holds above the support zones, but if it breaks below $2,650, we might shift to a neutral or bearish stance until further structure confirms otherwise.
Sheena Lynne
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