Looking for an opportunity to jump on gold’s uptrend?
XAU/USD is fast approaching a key support area.
Check out what we’re seeing on the 4-hour time frame!
XAU/USD 4-hour Chart by TradingView
Gold has lost some of its shine in recent days as the Israel-Iran conflict pushed traders back into the U.S. dollar for safety. Hawkish Fed commentary, especially the focus on sticky goods inflation, also helped lift USD demand.
That said, the outlook could flip fast if the U.S. confirms direct involvement in the Middle East conflict, which might shift the safe haven flows back in gold’s favor.
Is XAU/USD positioned for a potential trend pullback setup?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on gold and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Last week, we spotted XAU/USD bouncing off ascending channel support on the four-hour chart, right around the moving averages. The pair went on to print new June highs, then pulled back toward the $3,360 zone.
Now, attention is on the $3,350 area, where the channel support lines up with the S1 Pivot Point around $3,335 and the 100 SMA on the four-hour chart.
A bounce from that zone could set up another push toward the $3,400 handle or even the $3,450 highs.
On the flip side, if the pullback gains steam and price breaks below the S1 Pivot and 200 SMA, then we might be looking at a deeper move toward $3,300 or $3,250 previous areas of interest.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
