The chart shows the XAUUSD (Gold/US Dollar) pair on a 15-minute timeframe. The market is currently trading around 2516.76, where price is approaching a critical resistance level and showing potential for a pullback or continuation of its bullish move.
Key Observations:
Resistance Levels:
The price is approaching a significant resistance zone between 2528.99 and 2530, where the price is expected to face selling pressure.
A breakout above this resistance would confirm further bullish movement, but rejection here could lead to a correction.
Support Levels:
Immediate Support: The price may retrace to the 2511 support area before any significant move upward.
Deeper Support: If the price breaks below 2511, further support is found around 2500.
EMA Structure: The EMAs (20/50/100) are aligned bullishly, showing continued upward momentum, but a potential short-term correction is also possible as the price tests resistance.
RSI Indicator: The RSI is hovering in the overbought territory at 70.78, indicating that the price might see a pullback before attempting to break the resistance level.
Expected Price Movement:
Bullish Scenario: If the price breaks through the 2528.99 resistance, it could push higher towards new highs, with a bullish continuation pattern forming.
Bearish Scenario: In case of rejection at resistance, the price may correct down to the 2511 support, and potentially as low as 2500 if bearish momentum increases.
This setup offers both bullish continuation and potential retracement opportunities, depending on how the price reacts to the current resistance level. Traders should watch for either a breakout or a pullback to support before committing to a position.