XAUUSD 4HR In this chart, I am analyzing the XAU/USD market, and I expect a brief bearish correction before the market resumes a strong bullish trend. Let me break it down:
1. Retracement (Pause):
I anticipate the market will retrace downwards to the Fibonacci 0.61 level, which is around $2,630.79. This is a key level where markets often find support.
2. Bearish Correction:
Before reaching the Fibonacci retracement level, the market is expected to experience a slight decline (as indicated by the red arrow). This is a natural pause in the trend before further movement.
3. Bullish Continuation:
Once the market reaches or approaches the 0.61 Fibonacci level, it is expected to gain support and continue its upward trend strongly (indicated by the green arrow).
4. Moving Averages (MAs):
The chart shows two moving averages – the red one represents the short-term trend, while the yellow one indicates the longer-term trend. These can signal potential trend reversals when they cross.
5. Overall Outlook:
Currently, the market appears to be in an uptrend. However, a small retracement may occur before the bullish momentum resumes, potentially surpassing the current highs.
If you’re trading this market, it’s crucial to monitor the reaction near the $2,630.79 level to assess the support. Afterward, there’s a high likelihood of a strong bullish continuation.