XAUUSD Weekly Trade Setup(14-18th July 2025) - Bullish Strategy

2 days ago

In the ever-volatile world of commodities, Gold (XAUUSD) has yet again presented a promising technical setup. For traders looking to capitalize on price action and structure-based strategies, the upcoming week (14th to 18th July 2025) offers a clean breakout and retest opportunity backed by a strong risk/reward ratio.

Let’s break down the trade plan in detail.

1. Overview of the Current Market Structure
As shown in the 4-hour chart, XAUUSD is approaching a key horizontal resistance zone around 3360–3370. Historically, this area has acted as a rejection point for buyers. However, the recent bullish momentum, supported by price trading above the 200 EMA, suggests a potential breakout.

This forms the basis of a Breakout-Retest-Continuation strategy – one of the most reliable setups in price action trading.

2. The Trade Plan
Here’s the structured plan for this setup:
🔵 Step 1: Wait for the Breakout

Price must break above the resistance zone (3360–3370) with a strong bullish candle.
Avoid chasing the breakout; instead, let the market confirm its direction.

🟠 Step 2: Look for the Retest

After the breakout, wait for the price to pull back to the broken resistance, now acting as support.
Confirm this retest with a reversal candlestick pattern (e.g., bullish engulfing or hammer) on the 1H or 4H timeframe.

🔴 Step 3: Entry and Stop Loss

Enter the trade after the confirmation candle closes.
Place a stop loss below the swing low of the retest zone.
This protects the trade in case of a false breakout.

🟢 Step 4: Set Your Target

The profit booking zone lies around the 3440–3450 region.
This setup offers a Risk/Reward Ratio of 1:4, targeting 1:2, 1:3, and potentially 1:4 if momentum continues.

3. Why This Setup Makes Sense

EMA Confirmation: Price is trading above the 200 EMA, showing bullish bias.
Clean Price Action: Well-defined structure makes it easy to identify breakout/retest levels.
Strong Risk Management: The stop is tight and logical, while the upside potential is considerable.
Psychological Support Zone: 3360–3370 has repeatedly acted as a key decision level.

4. Trade Management Tips

Trail your stop loss once 1:2 R:R is achieved.
Consider partial profit booking at 1:2 or 1:3 to lock in gains and reduce risk.
Be patient – the key to this strategy is waiting for the retest confirmation.

5. Final Thoughts
Trading XAUUSD can be both rewarding and risky. This weekly setup gives you a disciplined approach to enter the market at a high-probability point with excellent reward potential. Whether you’re a swing trader or an intraday scalper on lower timeframes, this strategy adapts well with proper confirmation.

Stay tuned for live updates, and as always – plan your trade, and trade your plan.

Happy Trading!

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Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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2 days ago

Note

14/07/2025 - Market Update
- Facing rejection at resistance level. Inverted Hammer formed at resistance level
- For breakout confirmation the current 4 hr candle should be close above this inverted hammers high

*Waiting for the breakout confirmation

yesterday

Note

Trade Update:
- XAUUSD gives sign to breakout situation
- After successful breakout expected fullback towards the breakout level.

18 hours ago

Trade active

Entering for reversal bearish short trend
- Three upside down candlestick pattern at re-test level indicating further downside movement
- Reversal confirmation from resistance level
- Focusing 1:2 to 1:4+ Risk rewards

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