XAUUSD Resistance Approach

After a significant drop and approaching to the strong support level at 1850, price started to rise and retrace.

Currently, as you see in the 4H chart, price is facing a bullish pressure and is moving upwards to the resistance zone around 1913-1917 for a retest.

We still don’t know if price is in the correction phase or has been reversed, and we should wait for its reaction to the resistance zone.

In the higher time frame (daily), we have a bearish structure with lower highs and lower lows. So, there is a high probability of a rejection from the resistance area and the continuation of the downside move towards 1850 again which is a major low.

On the other hand, since we are facing a strong bullish pressure, if the resistance area broken out to the upside, we can expect a rise to the next high (resistance point) around 1950 in the future.

What is your outlook on XAUUSD? Share your ideas in the comments.