[XAUUSD] Reversal Signals from Key Support

As of the July 28–29 trading sessions, the XAUUSD 15-minute chart is showing early signs of a bullish reversal, with price reacting strongly at a key Fibonacci support zone and breaking through a descending trendline.
1. Price Action and Technical Structure
After a prolonged downtrend from the 3,430 zone, gold found support at the 0.618 Fibonacci retracement (3,327.85), aligning closely with the horizontal support at 3,324 – 3,327.
A descending trendline has been breached, signaling a potential breakout setup.
A potential ZigZag corrective wave structure is forming, hinting at the beginning of a new bullish swing.

2. Fibonacci Extension & Upside Targets
The Fibonacci extension tool suggests a possible rally toward the 3.618 extension at 3,425.
This level marks the next major upside target if the breakout holds.

3. Key Price Levels
Price Zone
Technical Significance: 3,327 – 3,324 Major support zone (Fib 0.618 + horizontal support)
3,350 – 3,355 First reaction zone / interim resistance
3,380 – 3,400 Strong resistance zone
3,425 Final target – 3.618 Fib extension

4. Suggested Trading Strategy
Long Setup – Breakout & Reversal Confirmation
Entry: 3,328 – 3,332 (after bullish confirmation above trendline and support)
Stop Loss: Below 3,320 (beneath local swing low)
Take Profit: 3,355 → 3,380 → 3,425 (scaling out by zone)

Bearish Continuation Scenario
If price drops below 3,320 and breaks 3,307 support, the bullish outlook is invalidated, and a retest of deeper levels is likely.

5. Volume and Confirmation Cues
Volume has started to pick up as price tests the breakout zone – indicating that buying pressure may be returning.
Wait for a strong bullish candle with volume above average before committing to the trade.
Gold is approaching a critical inflection point, and bulls may regain control from this confluence support zone. Stay alert for a breakout confirmation. Save this idea if you find it helpful and follow for more high-probability strategies!