XAUUSD – The downward trend continues to be prioritisedThe downward trend continues to be prioritised (Wolfe Waves Pattern H4)
Hello Trader,
Gold is following the Wolfe Waves structure on the H4 chart, after bouncing off the upper resistance zone and returning below the trendline. This indicates that the short-term upward momentum has weakened, and the scenario of a downward adjustment continues to be prioritised at this stage.
Technical Analysis
Wolfe Waves are clearly formed, wave 5 has hit resistance and a reversal signal has appeared.
The price failed to hold above the upper trendline, while the MACD shows weakening upward momentum.
The 3746 – 3748 zone is considered the main “sell zone” in the short term.
Nearby support zones: 3709 – 3711 and deeper at 3675 – 3678. Further, the area around 3650 is an important “buy zone” in the medium term.
Trading Scenario
Sell following the trend (priority)
Entry: 3746 – 3748
SL: 3754
TP: 3733 → 3720 → 3702 → 3690
Buy Short-term Scalping
Entry: 3709 – 3711
SL: 3705
TP: 3722 → 3730 → 3745
Buy Deep Support Scalping
Entry: 3675 – 3678
SL: 3670
TP: 3688 → 3696 → 3710 → 3725
Medium-term Buy Zone
Entry: around 3650
This is a high-volume accumulation zone, coinciding with strong support on H4. This area is suitable for considering medium-term buy orders if the price adjusts deeply.
Conclusion
In the short term, the bearish scenario continues to be prioritised, especially when the price remains below the 3748 zone.
Buy strategies should only be considered in the form of scalping or at the important buy zone around 3650.
The current gold market is still in a distribution phase, so patience is needed to observe candle confirmations at entry zones to optimise the R:R ratio.
This is today's XAUUSD trading scenario according to Wolfe Waves on H4. You can refer to and combine with personal strategies for the best risk management.
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