Gold Spot / U.S. Dollar
Long
Updated

XAUUSD May Recover Into The Cloud Before A New Trend Decision

476
MASON XAUUSD – Gold May Recover Into The Cloud Before A New Trend Decision

XAUUSD is trading around 4,155 after reacting strongly from the lower liquidity area. Price is still inside the descending channel and remains below the Ichimoku cloud, so the larger structure is not bullish yet.

However, after filling the liquidity gap and reacting from the psychological buy zone, gold may form a technical recovery before choosing the next direction.

Technical View
Gold is still moving inside a clear descending price channel. The main trendline resistance above price continues to guide the broader bearish structure.

Price is also below the Ichimoku cloud, which means sellers still have control from the trend perspective. A real trend shift needs price to recover back into the cloud first, then hold above it with strong price action.

The important point is the reaction from the lower channel area near 4,030–4,060. This zone acted as a psychological buy area, and the reaction shows that sellers may be slowing down after the previous strong drop.

Price Action is now showing an early recovery attempt. If gold holds above 4,120–4,150, it may continue toward 4,220–4,240 and move back into the cloud zone.

But if price fails to hold above the current recovery area, the bearish channel remains dominant and gold may retest the lower liquidity zone again.

Key Zones
Current price: 4,155
Psychological buy zone: 4,030–4,060
Short-term support: 4,120–4,150
Cloud recovery zone: 4,220–4,250
Resistance: 4,350–4,380
Key price range: 4,500–4,530
Invalidation for recovery: below 4,030

Trading Plan
Buy Recovery Priority: 4,120–4,150
Condition: wait for bullish rejection, higher low, or price holding above the lower channel reaction zone.

SL: below 4,030
TP1: 4,220–4,250
TP2: 4,350–4,380
TP3: 4,500–4,530

Alternative Scenario
If gold breaks above 4,250 and holds inside the Ichimoku cloud, wait for a retest before looking for continuation toward 4,350–4,380.

Sell View
Sell is not ideal after price already reacted from the lower liquidity area. A better sell setup may appear only if gold rejects strongly from the cloud zone or the upper trendline resistance.

Final View
Overall, gold is still in a bearish channel and below Ichimoku, but the strong reaction from the lower liquidity zone suggests a recovery phase may come first. The key is whether price can enter the cloud and hold above 4,220–4,250.

Will gold recover into the Ichimoku cloud first, or reject early and return to the lower channel?
Trade active
The scenario is unfolding exactly as predicted: price bounced up, reacting at the sell zone; continue to maintain this perspective.
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