XAU/USD Technical Analysis: Major Levels, Market Structure, and

🔍 XAU/USD Technical Analysis: Major Levels, Market Structure, and Trade Ideas

In this detailed analysis of XAU/USD, we highlight key supply and demand zones, dynamic trendlines, and the interplay of structural shifts to help traders navigate the current price action effectively.

🔴 Key Supply Zone (Week & Day A+ Selling Area)

Location: Above 3,320- 3,330

Significance: This red zone has historically acted as a strong resistance area. Price has failed multiple times to break above it convincingly, suggesting institutional selling pressure.

Implication: Any revisit to this zone could trigger bearish rejection, making it a key level for short setups.

🟢 Major Demand Zone (Week & Day A+ Buying Area)

Location: 3,230–3,260 region

Significance: This green zone has consistently provided support for price, as shown by multiple bounces from it. It suggests strong buying interest from institutions or large market participants.

Implication: Traders can watch for bullish price action in this area to confirm potential long opportunities.

📈 Dynamic Trendlines

🔵 4H Down-to-Up Trend Line:

This ascending trendline, drawn from major swing lows, suggests that the broader 4H market structure remains bullish.

Use: Acts as dynamic support for possible bounces.

🔴 4H Up-to-Down Trend Line:

This descending trendline captures the bearish structure in the 4H timeframe, connecting the lower highs and indicating ongoing selling pressure.

Use: Functions as a dynamic resistance area.

✅ 15M Change of Character (CHoCH)

This micro timeframe level marks a shift in sentiment from bearish to bullish, providing early confirmation for potential reversals or continuation plays.

Use: Intraday traders can utilize this for short-term entries in line with the broader bias.

🔻 Monthly Low Level

Location: Around 3,120

Significance: This level marks the lowest point in the recent monthly cycle and serves as a crucial support area for the broader trend.

Implication: A break below this level would suggest further downside potential.

💡 Trade Scenarios

1️⃣ Bullish Scenario

If price retests the Week & Day A+ Buying Area (3,240–3,260) and forms bullish confirmation (like a bullish engulfing candle or 15M CHoCH shift), a long trade could be initiated.

Potential Targets:

4H descending trendline near 3,300

Week & Day A+ Selling Area above 3,320

2️⃣ Bearish Scenario

If price reaches the 4H descending trendline or the selling zone above 3,320 and forms bearish rejection, shorts can be considered.

A break below the 4H ascending trendline and the demand zone would open the door for deeper downside, with the ultimate target at the Month Low near 3,120.

📝 Conclusion
XAU/USD is consolidating within a crucial range, balancing supply and demand forces. The dual-trendline structure signals a potential breakout in the coming sessions. Short-term traders can leverage the 15M CHoCH for early entries, while swing traders should focus on the interplay between the higher timeframe zones and trendlines.

📌 Reminder: Always wait for confirmation before entering trades and manage risk according to your trading plan.

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