XAU/USD is in a bearish trend on 1H making LHs & LLs. Price is currently testing a falling resistance after recently forming a Head & Shoulders pattern.
The price might break above the falling resistance and rise towards the Neckline or the Volume Profile POC.
The Bullish Bias is based on the following confluence:
A break above falling trendline might give control to bulls. There's also an opportunity to go short if the support breaks downside. Wait for confirmation before going in any direction.
Trade safe. Hit like & follow for more analysis.
The price might break above the falling resistance and rise towards the Neckline or the Volume Profile POC.
The Bullish Bias is based on the following confluence:
- Strong Support + 38% Fib Retracement
- Bullish divergence on RSI
- Price respecting 200 SMA
- OBV divergence with price (downtrend lacks conviction)
- Long bottom wicks and Bullish Engulfing candle on Support
- Volume Profile POC of previous trend
A break above falling trendline might give control to bulls. There's also an opportunity to go short if the support breaks downside. Wait for confirmation before going in any direction.
Trade safe. Hit like & follow for more analysis.