XAUUSD continues to trade within a clearly defined bearish market structure despite the recent bullish recovery. After forming a sequence of lower highs and lower lows, price has rallied into an important resistance zone where several technical factors are converging.
The current reaction is taking place near the Ichimoku Cloud resistance, while price is also testing a previous supply area that may attract fresh selling interest. Although short-term momentum has shifted in favour of buyers, the broader trend remains bearish unless price delivers a decisive breakout and sustained close above this resistance zone.
From a Smart Money perspective, the recent recovery appears to be a retracement into premium pricing rather than a confirmed trend reversal. A rejection from this area could initiate another impulsive bearish move, targeting the recent swing lows and continuing the broader downtrend. The projected scenario also suggests the possibility of a brief liquidity sweep above local highs before sellers regain control.
The next directional move will largely depend on how price reacts around this resistance cluster. A strong bearish rejection would reinforce the prevailing market structure, whereas a clean breakout above the cloud would weaken the bearish bias and increase the probability of a deeper bullish correction.
Key Levels to Watch:
Resistance: 4085–4100
Immediate Support: 4060
Major Bearish Target: 3980–3960
Disclaimer: This analysis represents my personal market view based on current price action and should not be considered financial advice. Always wait for confirmation and apply proper risk management before entering any trade.
The current reaction is taking place near the Ichimoku Cloud resistance, while price is also testing a previous supply area that may attract fresh selling interest. Although short-term momentum has shifted in favour of buyers, the broader trend remains bearish unless price delivers a decisive breakout and sustained close above this resistance zone.
From a Smart Money perspective, the recent recovery appears to be a retracement into premium pricing rather than a confirmed trend reversal. A rejection from this area could initiate another impulsive bearish move, targeting the recent swing lows and continuing the broader downtrend. The projected scenario also suggests the possibility of a brief liquidity sweep above local highs before sellers regain control.
The next directional move will largely depend on how price reacts around this resistance cluster. A strong bearish rejection would reinforce the prevailing market structure, whereas a clean breakout above the cloud would weaken the bearish bias and increase the probability of a deeper bullish correction.
Key Levels to Watch:
Resistance: 4085–4100
Immediate Support: 4060
Major Bearish Target: 3980–3960
Disclaimer: This analysis represents my personal market view based on current price action and should not be considered financial advice. Always wait for confirmation and apply proper risk management before entering any trade.
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.
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.