On the 1-hour timeframe, Gold Spot (XAUUSD) has entered a consolidation phase after a strong impulsive bullish move. The market structure shows that after forming a significant high, price faced selling pressure but eventually found support within a key demand zone. This area, marked by multiple price reactions, is now acting as a critical decision point for traders. Additionally, the formation of a short-term range around the mid-Fibonacci level (approximately 0.5) indicates a temporary balance between buyers and sellers, which often precedes a strong directional move.
In the bullish scenario, holding above this support zone and breaking short-term highs could open the path for further upside, potentially targeting higher levels on the daily timeframe. Confirmation from lower timeframes, such as 15-minute bullish structures, would strengthen this outlook. On the other hand, if price fails to maintain this zone and breaks below it with strong momentum, the likelihood of a liquidity sweep below the range increases, potentially driving the market toward lower levels. In that case, the market would be seeking sell-side liquidity and completing a deeper corrective structure, creating new opportunities for entries at more favorable prices.
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