Attention traders! The current trajectory of XAUUSD is undeniably compelling, and here’s my technical analysis based on the latest chart developments. Gold is firmly entrenched in a broader bullish framework, characterized by a consistent pattern of higher highs and higher lows. Initially, the price spent considerable time consolidating within various range formations, which suggests accumulation was taking place prior to the next upward movement. After successfully breaking out of the latest range, XAUUSD surged upward, adhering to an ascending trend structure that signals strong control by buyers.
This bullish momentum evolved into a rising wedge pattern, with the price steadily increasing while being confined between the support and resistance lines of the wedge. Throughout this period, any pullbacks were corrective in nature, as buyers consistently defended higher support levels. Recently, Gold surpassed the crucial Buyer Zone around the 4,900 mark, affirming a successful breakout and a solid acceptance above previous structures. This level has now transitioned into support, aligning perfectly with the broader Support Level illustrated on the chart.
At present, the price is consolidating above this pivotal zone while honoring the wedge's support line, indicating that we may see a continuation of the upward trend rather than a slowdown. Just above the current market position lies a well-defined Seller Zone and Resistance Level near the 5,040 to 5,050 range, which poses the next significant challenge where profit-taking or selling pressure could arise.
My perspective is clear: as long as XAUUSD remains above the 4,900 Buyer Zone and continues to respect the rising wedge's support line, the bullish outlook holds strong. I anticipate that buyers will sustain their control and push toward the 5,040 resistance area (TP1). A decisive breakout and subsequent acceptance above this Seller Zone would confirm further upward movement and potentially lead to new highs.
However, if we encounter a notable rejection at this resistance level, it could trigger a short-term pullback towards the Buyer Zone before we see the next directional shift. Should there be a significant breakdown beneath the support, it would undermine the bullish framework and indicate the onset of a deeper corrective phase. For the moment, market structure and momentum clearly favor buyers.
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