Gold (XAUUSD) recently rejected the 3,720 USD/oz zone after a strong rally and is now forming a clear ABC corrective structure on the H1 timeframe.
Wave (A) bottomed near 3,640.
Wave (B) retraced back to 3,670 – 3,680, showing weak momentum.
Wave (C) could be underway, with potential targets at lower support levels.
Key Technical Levels
Immediate Resistance: 3,670 – 3,680 (wave B peak).
Major Resistance: 3,700 – 3,720 (previous high and supply zone).
Immediate Support: 3,640 (wave A low).
Major Support: 3,600 – 3,610 (Fibonacci 0.382-0.5, aligned with descending trendline).
Indicators
EMA20 crossing below EMA50 on H1 → bearish short-term bias.
RSI bounced from oversold but still below 50 → weak recovery, favoring further downside into wave (C).
Trading Strategies
Primary Scenario (Bearish): Look for SELL opportunities around 3,670 – 3,680, targeting 3,640 first and extending to 3,600. Stop loss above 3,690.
Alternative Scenario (Bullish): A breakout and H1 close above 3,700 would shift bias to the upside, opening room toward 3,720 – 3,740.
Conclusion
Gold remains in a corrective phase with downside risk toward 3,600 if resistance holds. Watch closely how price reacts at 3,670 – 3,680 for short-term opportunities.
Stay tuned for more strategies and insights – follow along if you find this analysis helpful.
