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XAUUSD H1: Will the Breakout Zone Continue to Support Price?

XAUUSD H1: Will the Breakout Zone Continue to Support Price?

Gold OANDA:XAUUSD

After breaking strongly above the previous resistance zone, XAUUSD is now returning to retest the area it recently surpassed. This is a common development after a strong rally, as the market needs to confirm whether the breakout zone has truly turned into support.

The positive sign is that current selling pressure has not been strong enough to push price back below this area. If buyers continue to defend the new support successfully, the bullish move is more likely to resume rather than reverse.

I expect XAUUSD to complete the retest and continue moving toward higher levels in the short term. The current bullish scenario will only begin to weaken if price closes back below the breakout zone.

This is only my personal view based on technical analysis. Wishing you successful trading!

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