Gold Price in Key Compression Zone: Awaiting Breakout

The 1-hour chart of XAU/USD (Gold Spot vs US Dollar) shows a clear symmetrical triangle formation, where the price has been compressing between a descending resistance zone (red) and a horizontal support zone (green). Here's a breakdown of the setup:

Support Zone (~3040–3080 USD):
This area has acted as a strong base multiple times, suggesting buyers are stepping in consistently at this level.

Resistance Trendline (~3310–3320 USD):
The price has repeatedly tested this descending resistance line but has failed to break above it so far.

EMA Indicators:

• 50 EMA (black line): Currently acting as dynamic resistance.
  
• 200 EMA (blue line): Price is hovering around it, indicating indecision.
  

Projected Breakout Scenarios:
Upside Breakout:
If price breaks above the resistance trendline, a sharp rally is projected towards the 3480–3520 USD zone. This move aligns with previous supply levels.

Downside Breakout:
If support fails, we could see a breakdown toward the 3040 USD region, with extended targets near 3080–3040 USD.

Current Bias:
The market is consolidating, and a breakout is imminent. Watch for volume and candle confirmation at either the resistance or support to determine the next major move.


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I am a participant in TradeNation's Influencer Program and receive a monthly fee for utilising their TradingView charts in my market analysis.
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