FX.co ★ FlyWithEagle | XAU/USD, GOLD

Analysis Date: August 23, 2025 Time of Analysis: 07:55 UTC+5 Currency Pair: Gold Spot / U.S. Dollar (XAU/USD) H1 Chart Analysis (Higher Timeframe)

The 1-hour chart reveals a strong bullish momentum. A significant impulsive move occurred recently, breaking decisively through previous resistance levels around $3,345. Following this breakout, the price has entered a consolidation phase, forming what looks like a bull flag or pennant. This is a classic continuation pattern, suggesting that after a brief pause, the price is likely to resume its upward trend. The Relative Strength Index (RSI) is high at 69.10, just below the overbought territory. This confirms the underlying strength of the bulls and supports the idea of further upside potential once the consolidation resolves. M5 Chart Analysis (Lower Timeframe)

The 5-minute chart provides a detailed view of the consolidation mentioned in the H1 analysis. The price is trading in a tight sideways range, with clear resistance established around the $3,375 level. The price action is characterized by smaller candles, indicating a period of indecision or accumulation before the next significant move. The RSI on this timeframe is hovering around 50, which is neutral. This reflects the current lack of direction within the range and is typical for a consolidation phase before a potential breakout. Detailed Trade Setup (Long Position) The proposed trade is a long (buy) position that capitalizes on the expected continuation of the bullish trend seen on the H1 chart. The strategy is to enter the trade once the price breaks out of the M5 consolidation range, confirming that buyers have regained control. Entry Point: $3,376.00 This entry is placed slightly above the consolidation resistance of $3,375.00 to confirm a genuine breakout and avoid false moves. Target: $3,398.50 This target is set to achieve a favorable 2.5:1 risk-to-reward ratio. It represents a logical next level for the bullish continuation. Stop Loss: $3,367.00 This stop loss is positioned just below the recent lows of the M5 consolidation range. A break below this level would invalidate the bullish breakout scenario.