XAUUSD – Medium-Term Trading Scenario

XAUUSD – Medium-Term Trading Scenario

Hello traders,

Gold is moving into the final stage of its flag pattern. Medium-term traders are now waiting for a clear breakout confirmation, as that will set the direction for the next medium- to long-term opportunities. Once price confirms the break, the strategy is to enter immediately in the direction of the move.

Meanwhile, short-term and day traders continue to trade within the flag, looking for scalping opportunities.

From my perspective, the probability of gold breaking to the upside and continuing the main bullish trend is fairly high after such a long consolidation. To optimise entries, buying near the lower boundary of the trendline makes sense, with stop-losses placed immediately if the pattern breaks down. The key area to watch is Fibonacci retracement 0.5 at 3354, which acts as both dynamic and static support, as well as a strong Fibonacci level. This zone offers a reliable long-term buy opportunity.

Another potential early buy entry sits around 3372, where the previous candle showed strong bullish momentum. Positions here can be taken with tighter stops placed just below the nearest support.

This bullish scenario would only fail if price breaks below the lower trendline and closes firmly underneath it, which would confirm a reversal.

Wishing you success with this setup. If you share the same outlook, leave your thoughts in the comments so we can exchange ideas.