Short-Term Technical Analysis of XAU/USD

Timeframe: 15-minute chart
Entry Price: 2625
Stop Loss: 2617
Take Profit: Based on Fibonacci Retracement at 161.8%

Analysis:
Gold (XAU/USD) is currently trading in a bullish short-term momentum, with a key breakout observed near the 2625 level, which aligns with a significant resistance-turned-support zone. The 15-minute chart highlights a recent impulsive move, followed by a minor retracement, creating a potential setup for continuation.

Fibonacci Levels:
The Fibonacci extension tool, applied to the most recent swing, places the 161.8% retracement level as the take-profit target. This level is indicative of the next possible resistance zone and offers a favorable risk-reward ratio.
Stop Loss:
A tight stop loss at 2617, just below the prior swing low, minimizes downside risk. This level also sits below the 23.6% retracement of the same swing, serving as an invalidation point for the bullish setup.
Momentum Indicators:
RSI: Holding above 50, indicating bullish momentum. A break above 70 may signal further upside.
Moving Averages: The 50-period moving average on the 15-minute chart supports the upward trajectory, acting as dynamic support.
Trendline Support:
A short-term ascending trendline intersects near the entry point, offering additional confluence for a continuation trade.
Trading Plan:

Entry Point: 2625
Enter as the price stabilizes above this level, confirming breakout strength.
Stop Loss: 2617
Protect against downside risks with a stop loss below recent swing lows.
Take Profit: Based on the Fibonacci 161.8% level.
Monitor price action as it approaches the target for signs of weakening momentum or rejection.
Conclusion:
This setup offers a favorable risk-reward ratio with strong technical confluence for a continuation toward the Fibonacci 161.8% extension level. Tight risk management with a stop loss at 2617 ensures downside protection if the setup fails.

Note: Always ensure alignment with broader market trends and fundamental events, especially for XAU/USD, which is sensitive to economic data and geopolitical developments.

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Always conduct your own research before trading.