XAUUSD H2: Bullish Momentum Approaches a Key Test
After holding firmly above the ascending trendline, XAUUSD delivered a strong breakout and quickly reclaimed the area above 4,120. This suggests that buyers remain in control in the short term. However, the next major challenge lies at the historical resistance around 4,190, a level that could determine whether the bullish trend continues to expand.
If price continues to hold above the nearby support and attracts fresh buying interest on pullbacks, the probability of a retest of the 4,190 resistance zone will increase. On the other hand, a break below the ascending trendline would be the first sign that bullish momentum is beginning to weaken.
Trading Focus:
Look for Buy opportunities if price pulls back to the support zone and forms a bullish confirmation signal.
Target: 4,190
Invalidation:
The bullish scenario will be invalidated if XAUUSD breaks below and closes decisively under the ascending trendline.