XAUUSD | Daily Technical Outlook
Market Structure
XAUUSD has shifted into a clear corrective phase following an aggressive upside rally that pushed price to fresh highs. The recent selloff was sharp and impulsive, breaking below short-term support levels and signaling a loss of bullish momentum in the near term.
Despite the broader uptrend still visible on higher timeframes, the latest price action reflects strong profit-taking pressure, with sellers firmly in control after the rejection from the highs.
Key Resistance Zone
Immediate resistance is now located around $5110 – $5130, the zone created by the recent breakdown and failed recovery attempts. Any rebound toward this area is likely to face selling pressure.
Additional resistance levels:
- $5200 – $5220
- $5300 (major bullish continuation level)
As long as price trades below $5130, upside moves are likely to remain corrective.
Key Support Zone
Immediate support is found around $5030 – $5050, where price is currently attempting to stabilize after the selloff.
A breakdown below this zone would expose lower downside targets:
- $4980
- $4900 – $4920 (major structural support)
Failure to hold above $4900 would significantly deepen the corrective phase.
Expectations
Bearish Scenario (Primary)
The current structure favors further downside or continued consolidation as long as XAUUSD remains below $5130. A break below $5030 would likely extend losses toward $4980 and potentially $4900.
Bullish Scenario (Alternative)
A sustained recovery above $5130 would be the first signal of short-term stabilization, opening the door for a corrective move toward $5200. However, bullish continuation would require a decisive reclaim of the $5300 level.
Outlook
Gold is undergoing a healthy but aggressive correction after a strong upside run. While the broader trend remains positive on higher timeframes, near-term risk is skewed to the downside unless price can reclaim key resistance levels. As long as XAUUSD trades below $5130, sellers remain in control, with downside risks toward lower support zones still in play.Gold prices correct sharply after a strong rally as XAUUSD breaks key support, with sellers in control below major resistance levels.
