XAUUSD Long: Path to $3715 After Successful Retest

[Antony Bishop]

Hello, traders! The price auction for XAUUSD has been developing within a well-defined upward wedge for some time. This bullish structure has guided the price higher through a series of higher highs and higher lows, with the demand zone 2 at 3575 acting as a key pivot point low for the formation, establishing the underlying uptrend.

Currently, the auction has reached a critical stage after a strong impulse resulted in a breakout above the key horizontal demand level at 3665. This move shows strong bullish initiative, but such breakouts are often followed by a retest to confirm their validity before the next major leg up.

My scenario for the development of events is based on this breakout being successful. I expect the price to make a corrective pullback to retest the broken 3665 demand level from above. In my opinion, if this former resistance holds as new support, it will be a strong confirmation of the bullish trend. This should trigger a continuation of the rally towards the upper resistance line of the wedge. The take-profit is therefore set at 3715, just below this upper boundary. Manage your risk.

[Swipe]

Great analysis A clean breakout above 3665 with a successful retest could be the fuel for a strong rally. Watching 3715 as a key target makes sense, wedge structure still intact

[jacson4]

Nice breakdown! Retest of 3665 as support looks like the key confirmation before the next leg up.