Gold (XAUUSD) Analysis – October 12, 2024
Current market action shows significant price movement between key levels of support and resistance on the lower timeframes, particularly focusing on H1 and H4 levels.
The H1 resistance zone around 2,657.240 is being tested, with the potential for price to either break above this area or reverse sharply downward. If price sustains above this level, we may see a bullish continuation toward the H4 resistance near 2,681.482.
However, in the event of a rejection from 2,657.240, there is potential for a downward move targeting the immediate support levels at 2,637.958 and 2,629.122.
The confluence of the downtrend line (purple) aligning with current price action could add pressure for a bearish scenario. A clean break below 2,629.122 may lead to a deeper pullback, retesting the flip zone around 2,602.520.
Traders should keep an eye on these critical levels, as well as the reaction to the H1 resistance for direction clarity. Price action in the next few sessions will provide insight into whether bulls can regain control, or if the bears will extend the correction further.
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