Technical Analysis: XAU/USD (Gold) Price Action📊 Technical Analysis: XAU/USD (Gold) Price Action
🕒 Timeframe: 4H (Based on candlestick structure)
📅 Published: May 27, 2025
💰 Current Price: 3,303.860
🔴 Major Resistance Zone
📍 3,480 – 3,500
📌 Seen with red arrows and price rejections.
📉 Strong selling pressure has occurred twice from this level (double top-like behavior).
❗ Until price breaks above this, bulls face a major hurdle.
🟣 Key Mid-Level Zone (S/R Flip)
📍 3,340 – 3,360
🔄 This area has flipped between support and resistance.
🔸 Price tested this level recently and pulled back (orange circle), suggesting sellers are active.
🔮 This is the pivot zone – watch for break/rejection to determine next trend leg.
🟪 Main Support Zone
📍 3,180 – 3,220
✅ Multiple bounce reactions visible (green arrows and circles).
💪 This zone has held strong; indicates solid buyer interest.
📉 If price returns here and breaks below, we could see further downside to 3,120 or lower.
🧭 Market Structure Summary
🔁 The market is in a range-bound structure between 3,220 – 3,360, with spikes towards 3,480.
🔃 The recent higher low followed by rejection at mid-resistance suggests potential distribution.
🧠 Forecast Scenarios
🔵 Bullish Scenario (Blue Path)
Break above 3,360 → Retest as support → 📈 Potential rally to 3,480
📍 Target: 3,480+
🟢 Confirmation: Strong bullish engulfing candle + volume surge
🔻 Bearish Scenario (Blue-Arrow + Orange Circle)
Rejection at current resistance → Drop toward 3,220
📍 Target: Main Support zone
❗ Watch for bearish candle pattern confirmation at 3,340
⚖️ Trading Strategy Tips
🔍 Wait for confirmation at the mid-resistance before entering.
🛡️ Place stops below support zones for long positions.
💥 Aggressive short sellers may look to enter near 3,340 with tight stops above.
🧩 Conclusion
The asset is in a critical decision zone. Whether it breaks higher toward the resistance or retraces to support will shape the next directional move. Traders should remain cautious, and let price action confirm bias before committing.
