XAUUSD Monday Analysis

Gold Spot (XAU/USD) 1-hour timeframe, here’s an analysis for Monday:

Technical Analysis:

Current Price Action:

• The current price is around 2414.715, showing a minor decrease of 0.08% as of the last hour.
• The price recently broke above a significant resistance level, now turned into a support zone around 2390-2400 (highlighted in purple).

Key Levels:

Support Zones:

• Immediate Support: The area around 2400, which was a previous resistance, should now act as strong support.
• Secondary Support: Another support zone is around 2370-2380, where the price previously consolidated and found buyers.
• Resistance Zones:
• The next significant resistance level is near 2430-2440. This could be a potential target if the bullish momentum continues.

Patterns and Indicators:

• Change of Character (CHoCH): The price broke above the previous high, indicating a shift from a bearish to a bullish trend.
• Bullish Continuation: The recent breakout and the formation of higher highs and higher lows suggest a continuation of the uptrend.

Predicted Movement for Monday:

Bullish Scenario:

• If the price sustains above the immediate support zone (2400), we could see a continuation of the bullish trend.
• A potential retracement towards 2400 could be a good buying opportunity, aiming for the next resistance zone at 2430-2440.

Bearish Scenario:

• If the price falls below 2400, the next support at 2370-2380 could be tested.
• Failure to hold above 2370 might lead to a deeper correction, but this is less likely given the current bullish momentum.

Trading Strategy:

For Bullish Traders:

• Entry: Look for long positions on a pullback to the 2400 support zone.
• Stop Loss: Place a stop loss below the 2390 level to manage risk.
• Take Profit: Target the 2430-2440 resistance zone for potential profit.

For Bearish Traders:

• Entry: Consider short positions only if the price decisively breaks below 2400.
• Stop Loss: Above the immediate support zone, around 2410.
• Take Profit: Aim for the next support zone around 2370-2380.

Conclusion:

The overall sentiment for Gold Spot (XAU/USD) on the 1-hour chart is bullish, with the potential for further gains if key support levels hold. Traders should monitor the price action around the 2400 level for potential entries, and manage risk appropriately with stops and target levels.

Remember to stay updated with any fundamental news or economic events that might impact gold prices, as they can cause significant volatility in the market.