XAUUSD – H4 Trend Structure Awaiting BreakoutXAUUSD – H4 Trend Structure Awaiting Breakout
Brian – Strategy to Buy on Pullback in Uptrend Channel
I. Strategy Summary
Gold continues its uptrend on H4, supported by the upward trendline from the 3,880–3,900 region.
The price is testing the resistance zone of 4,133–4,150, coinciding with the H4 supply and descending trendline, making short-term corrections likely.
Main strategy: wait for a pullback to support/FVG to buy with the trend, avoid FOMO buying at resistance.
Key levels to note: closing below 4,000 weakens the uptrend structure; below 3,884 risks shifting to a medium-term downtrend.
II. Macro Context
Unemployment Claims (weekly unemployment benefits):
Forecast: 226K
Previous: 220K
Higher-than-expected figures → indicate a weakening labor market, cooling economy, increasing the likelihood of the Fed easing sooner → real yields decrease, supporting gold.
Better-than-expected figures (lower than forecast) → support USD and bond yields, potentially causing short-term pressure on gold.
Geopolitical:
Trump's statement on easing "deadline" pressure for Russia–Ukraine negotiations ("the deadline will be when the issue is resolved") helps the market worry less about a hard deadline, but conflict risks remain. The demand for gold as a safe haven remains stable, not overly inflated but also unlikely to disappear entirely.
III. Fundamental Picture
Expectations for a rate cut cycle in 2025 continue to support gold as the market gradually prices in lower real interest rates in the medium to long term.
The demand for holding defensive assets persists amid slowing global growth and unresolved geopolitical hotspots.
In the short term, USD and US bond yields remain the two leading variables; any USD recovery can pull gold back to technical support areas, creating opportunities for buy-on-dip strategies.
IV. Technical Structure – H4 Trend Channel & FVG Zone
On H4, the price is moving within an uptrend channel, with the support trendline respected multiple times since the end of last month.
Above is the descending trendline connecting the nearest peaks, creating a price compression zone as the market approaches the 4,133–4,150 area. This is a confluence resistance zone:
The nearest swing high.
H4 supply zone.
Intersection with the descending trendline.
Notable price zones:
Resistance: 4,133–4,150 – a zone that may trigger short-term profit-taking and create a correction.
Near support/FVG: 4,078–4,080 – FVG zone combined with support after the previous breakout.
Psychological support: 4,000 – if H4 closes below this area, the uptrend structure weakens.
Medium-term reversal level: 3,884 – closing below here opens the risk of shifting entirely to a medium-term downtrend.
V. Trading Plan
Scenario 1 – Buy with the Trend (Priority)
Idea: wait for a shallow pullback to near support in the H4 uptrend channel and then buy.
Entry: 4,111–4,114
SL: 4,005
TP: 4,133 – 4,150 – 4,172 – 4,190
Scenario 2 – Buy Deep at FVG Zone
Idea: if a stronger pullback to FVG 4,078–4,080 occurs, take advantage of the good price zone to buy.
Entry: 4,078–4,080
SL: 4,073
TP: 4,100 – 4,115 – 4,142
VI. Risk Management & Notes
Limit opening new orders at the time of Unemployment Claims announcement due to potential volatility and spread widening.
If H4 closes below 4,000, reassess all current buy positions.
If H4/Daily closes below 3,884, consider the medium-term uptrend structure broken; prioritize staying out to observe or wait for a new downtrend scenario instead of continuing to look for buying points.
