XAUUSD Technical Analysis – Bullish Continuation SetupXAUUSD Technical Analysis – Bullish Continuation Setup
📊 Market Structure Overview:
The chart shows a clear bullish structure shift, marked by multiple Break of Structure (BOS) events that validate strength from buyers. After forming equal lows and a liquidity sweep at the strong support zone, price has aggressively moved higher, breaking through minor resistance levels and showing clear bullish intent.
🧱 Key Technical Elements:
🔹 1. Strong Support Zone (Demand Rejection)
Price respected the strong demand zone between $3,260 – $3,280, where aggressive buying was seen after forming a bullish engulfing breakout. This zone aligns with previous demand and a major BOS, confirming institutional buying interest.
🔹 2. Bullish Order Flow & Break of Structure (BOS)
Multiple BOS levels across July and early August highlight a sequence of higher highs and higher lows, indicating trend continuation.
The most recent BOS after July 30 shows an impulsive break, confirming bullish dominance and clean order flow.
🔹 3. Fair Value Gaps (FVGs)
Bullish FVG (Mid-July): Price respected and bounced from this zone, showing previous imbalance was filled and used as a base for continuation.
New FVG (Above $3,420): The current upside target lies within this area, acting as a magnet for price due to unfilled orders.
🔹 4. Buy-Side Liquidity & Target Zone
The market is approaching a buy-side liquidity zone around $3,385, a key short-term target where previous highs and stop orders are likely pooled.
If liquidity above $3,385 is taken efficiently, price may expand into the FVG zone between $3,420 – $3,460.
🔹 5. Bullish Confirmation & Momentum
The candle structure shows a clean bullish impulsive move, followed by minor consolidation—likely a bullish flag/pennant indicating potential for further continuation.
Momentum is favoring buyers, and short-term consolidation above $3,340 is healthy for continuation.
🔐 Liquidity & Institutional Narrative
Equal Lows (EQL) and FVG fills suggest prior liquidity was swept and used to fuel institutional long positions.
The recent BOS confirmed that smart money has shifted bias toward longs, and price is now targeting remaining inefficiencies to the upside.
The clear alignment of BOS, liquidity sweep, and bullish FVGs reinforces a strong institutional footprint on this move.
🔍 Key Levels to Watch:
Level Type Price Zone (USD)
🔺 Resistance / FVG 3,420 – 3,460
🎯 Immediate Target 3,385
📉 Short-Term Support 3,340 – 3,320
🛡️ Major Demand Zone 3,260 – 3,280
📌 Conclusion & Outlook:
XAUUSD has initiated a strong bullish leg from the demand zone, confirming accumulation and structural reversal. Price is now moving toward the buy-side liquidity target of $3,385, with potential continuation toward the FVG resistance zone of $3,420–$3,460.
As long as price remains above the $3,320 structure support, the bullish bias remains intact. Any pullbacks should be seen as buying opportunities, especially on lower timeframe confirmations.
