Gold Eyes Short-Term Pullback Before Key Support Test"Gold Eyes Short-Term Pullback Before Key Support Test 🏆📉"
Market Structure
The chart shows a clear range-bound price action between the strong support near 3,303 – 3,316 and the resistance zone around 3,420 – 3,440.
Multiple Higher Lows (HL) indicate that the market has been trying to build a bullish structure, but the recent level rejection from resistance suggests sellers are still defending that zone aggressively.
2. Key Zones
Resistance (3,420 – 3,440): Price tested this level and faced a sharp rejection, marking it as a strong supply zone.
Support (3,303 – 3,316): Historical buy reactions are seen here, making it a crucial demand zone.
Entry Zone: Around 3,351 – 3,360, which is being used for the current short setup.
3. Pattern & Price Action
BOS (Break of Structure) occurred earlier on the left side of the chart, breaking above previous highs and confirming bullish strength at that time.
BOL (Break of Low) later on indicates a shift in momentum, as price failed to maintain the bullish push and created a bearish swing.
The Bullish Fair Value Gap (FVG) earlier provided a springboard for upward movement, but recent momentum failed to sustain.
4. Current Trade Idea (Short Bias)
Entry: 3,351 – 3,360 (retracement to minor resistance after breakdown).
Stop Loss: Above 3,380, protecting against a false breakout.
Target: 3,316 (mid-term) with a possible extension to 3,303 if bearish pressure continues.
5. Sentiment & Risk Factors
Bears are currently favored due to the rejection from major resistance and the inability of bulls to reclaim 3,380+.
If the price reclaims and holds above 3,380, this short setup will be invalidated, and the market could retest 3,420 – 3,440.
📌 Summary:
XAUUSD is trading in a defined range, with the current structure leaning bearish after resistance rejection. A short position from the entry zone targets the strong support below, but traders should remain cautious as higher lows in the past indicate that bulls may still attempt to defend support aggressively.
