XAUUSD: Rejection at Resistance Opens Path to 4,440 Support Zone

May 18

Hello everyone, here is my breakdown of the current XAUUSD setup.

Market Analysis

XAUUSD previously traded inside an upward channel, confirming strong bullish momentum. After reaching the major 4,720 resistance zone, price lost momentum and entered a downward channel. Following a breakout from that bearish structure, gold formed a short-term range and attempted to recover.

Currently, XAUUSD is trading below the 4,720 resistance zone while holding above the 4,440 support zone. Price recently formed a fake breakout above resistance and completed a rounding top pattern, signaling that buyers are losing control and sellers are regaining momentum.

My Scenario & Strategy

As long as XAUUSD remains below the 4,720 resistance zone and fails to reclaim the upper boundary, the bearish scenario remains valid. A continuation lower could push price toward the 4,440 support zone (TP1).

However, if price breaks back above the 4,720 resistance zone and holds above the recent highs, the bearish outlook would be invalidated, opening the path for a stronger recovery.

That’s the setup I’m tracking. Thank you for your attention, and always manage your risk.

May 19

Trade active

So far we can see the end of the correction after the last downward impulse. Next, I expect the price to resume its decline!

May 20

Trade closed: target reached

As we can see today, the graph shows that our thoughts were on the right track. The analysis fully justified itself and we got the result!