XAUUSD Technical Analysis (H1)

Based on the chart, price is consolidating above a key support zone while forming a Higher Low structure, although it remains under pressure from the long-term descending trendline. The trading range is gradually narrowing, suggesting that the market may be approaching a significant volatility breakout.

Trend

* Short-term: Neutral with a bullish bias.
* Price continues to hold above the 4,040 – 4,046 support zone, indicating that buyers are defending the bullish market structure.
* A confirmed H1/H4 candle close above the 4,090 – 4,096 resistance zone is required to validate a bullish continuation.

Resistance Levels

🔵 4,090 – 4,096 – Major resistance, aligned with the long-term descending trendline.

* A successful breakout above this zone would open the way toward 4,120, followed by the next target at 4,135.

Support Levels

🟢 4,040 – 4,046 – Immediate support and the key zone determining the short-term market direction.

🟢 4,019 – Strong support, aligned with the ascending trendline and the base of the current Higher Low structure.

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Trading Plan

🟢 BUY GOLD

* Entry: 4,021 – 4,019
* Stop Loss: 4,009
* Take Profit: 200 / 500 / 1000 pips

🔴 SELL GOLD

* Entry: 4,095 – 4,097
* Stop Loss: 4,107
* Take Profit: 200 / 500 / 1000 pips

Risk Management

* Risk no more than 1–2% of your account equity per trade.
* Wait for a confirmed breakout or rejection signal before entering any position.
* Consider moving your Stop Loss to breakeven once the trade reaches a reasonable profit level to protect your capital and reduce risk.