XAU/USD Analysis: Sideways Range and Awaiting Breakout

Gold (XAU/USD) is currently in a sideways consolidation phase on the H4 timeframe, with price oscillating between key levels. After reaching a recent high near $2,685, the price has now settled around the $2,640 - $2,650 range. The market is awaiting significant catalysts, including key US labor market data later this week, which could trigger a breakout from this tight range.

Key Levels to Watch:
Support: $2,630 - $2,640. This zone has acted as a floor, where buyers have previously stepped in.
Resistance: $2,665 - $2,685. A breakout above this level could pave the way for further upside momentum.

Strategy:
While Gold is currently moving sideways, traders should wait for a confirmed breakout either above resistance for a long position or below support for a potential short. A bullish breakout could target $2,700, while a break below $2,630 could signal further downside towards $2,600.

Trade Plan:
Buy: On breakout above $2,665, targeting $2,685 and potentially $2,700.
Sell: On breakdown below $2,630, targeting $2,600.

With important economic data ahead, it's critical to monitor both technical setups and fundamental news, as they will likely influence the next move.