FX.co ★ FX-Perfact | XAU/USD, GOLD

GOLD H4 Timeframe: Based on the GOLD H4 timeframe chart, the price movement structure still indicates a fairly strong bearish trend. This is evident from the price position below the 100 Moving Average (blue line) and 200 Moving Average (red line). Furthermore, the 100 Moving Average (MA) remains below the 200 Moving Average (MA), indicating that medium- to long-term momentum remains negative. This condition suggests that any current price increase could potentially be considered a correction as long as it fails to break through the key resistance area and alter the existing trend structure. In recent weeks, the price has experienced gradual selling pressure after failing to maintain the peak area around 4718 to 4755. This failure triggered the repeated formation of lower highs and lower lows, a key characteristic of a downtrend. The decline intensified when the price broke through the 4478 support level and continued to weaken, hitting a low around the 4021 area. After reaching this area, strong buying action emerged, causing the price to rebound towards the 4222 area. However, this increase was unable to change the overall trend direction as it remained stuck below the 100-day moving average (MA) and well below the 200-day moving average (MA). In terms of horizontal support and resistance, the 4112 area is the closest support level, which the price is currently successfully holding. This level plays a crucial role because it has served as a rebound point several times after selling pressure subsided. If the 4112 support level is convincingly broken, the price will have a greater chance of retesting the psychological 4021 area. Furthermore, if selling pressure continues and the 4021 area fails to hold, the bearish trend has the potential to continue to lower levels in the following period.

Meanwhile, the closest resistance level is located at the 4222 area, which is currently a major obstacle to price recovery efforts. This area previously served as support before being broken and turning into resistance, in accordance with the role reversal principle in technical analysis. As long as the price remains below 4222, short-term bearish pressure remains relatively dominant. If the price manages to break through and hold above this level, there will be an opportunity for upside towards the next resistance level around 4478. However, the 4478 area holds greater significance due to its proximity to the 100-day moving average (MA), which is currently trending downward. The next resistance levels are at 4594 and 4718. These two areas were previously consolidation and distribution points before a major decline. If the price breaks through 4478 and moves towards 4594, this could be an early indication that selling pressure is starting to weaken. However, as long as the price remains below the 200-day moving average (MA), which is currently around 4550–4600, and continues to decline, the long-term trend cannot be considered bullish. The current price movement indicates a consolidation phase after a rebound from the 4112 area. This type of consolidation typically determines the next direction. If buyers are able to maintain support and push the price through 4222, a potential recovery towards 4319 or 4478 is possible. Conversely, if the price fails to break through this resistance and forms a lower high again, selling pressure risks dominating the market again. Overall, the technical analysis of GOLD on the H4 timeframe remains bearish because the price is below the 100- and 200-day moving averages, and both moving averages are still trending downward. Key support areas are at 4112 and 4021, while key resistances are at 4222, 4478, 4594, and 4718. In the short term, market attention will be focused on the price's ability to maintain support at 4112 and its efforts to break through resistance at 4222. As long as there is no strong breakout above this resistance, the chance of a continuation of the downtrend is still greater than the potential for a full trend reversal.