This chart represents the price action of XAU/USD (Gold vs. USD) on the 1-hour timeframe. Key components of the analysis include:
1. Supply Zone: The chart highlights a supply zone near the 2,698-2,681 level, where selling pressure is expected to dominate, potentially reversing the price downwards.
2. Resistance Zone: A resistance area is marked around 2,681, indicating a level where the price has previously struggled to break above. It's expected to act as a barrier for upward momentum.
3. Support Zone: A support zone is noted near 2,653, which has historically provided a base for price rebounds, preventing further declines.
4. Price Action Expectation:
The blue arrows suggest potential movements: an upward attempt towards the supply zone and resistance.
If rejected, the price may decline toward the identified support level at 2,653.
This analysis relies on supply and demand zones, as well as key horizontal levels, to predict price movement. It reflects a possible short-term scenario for XAU/USD traders, with careful attention to breakout or reversal signals.
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