XAUUSD 4H Analysis: Range-Bound Dynamics and Key Setups for Week

Instrument: XAUUSD
Timeframe: 4H

Market Context 🌐

- XAUUSD continues to trade within a medium-term range established on November 14.
- This week opened near the middle of the range following last week’s bearish reversal, with price continuing to face downward pressure.

Key Observations 🕵️‍♂️

Weekly Open Dynamics:
- Price opened near 2650 (weekly open), testing the highs before printing a Short-Term High (STH) with a strong bearish engulfing pattern on Monday.

Midweek Breakdown:
- Price consolidated above 2650 before breaking down during Tuesday's London session, closing below the recent Short-Term Low (STL).
- A slight retracement occurred into the breakdown zone, followed by continued bearish momentum.

Wednesday Expansion:
- A bearish expansion broke below the Long-Term Low (2605) at 5:00 AM, creating a significant move. Price stayed within this expansion range until the weekly close near 2625.

Learnings 📚
- Shorts above 2650 targeting below 2600 were the optimal play this week.
- Consolidation at key levels (e.g., 2650) provided clear clues for directional moves.
- The midweek expansion highlighted the importance of monitoring price action near round numbers and reacting to high-impact news events.


Next Steps 🚀
Monitor Key Price Action Patterns:
- Focus on consolidations near significant round numbers like 2650.
- Watch for breakdowns followed by retracements into prior zones before continuation.

Integrate This Week’s Insights:
- Apply observations from this week’s price behavior:
- Early-week consolidation above 2650 before the breakdown.
- Midweek expansion below 2600 followed by profit-taking into the weekend.

Plan Around High-Impact News:
- Use the economic calendar to anticipate volatility and key moves.
- Develop strategies to capitalize on post-news directional shifts, particularly during major announcements like Core PCE and FOMC events.

News Recap 📰
- Monday: Flash PMI readings.
- Wednesday: FOMC rate decision, projections, and press conference.
- Friday: Core PCE Price Index (0.1%) and UoM Consumer Sentiment (74.0).

Let’s carry forward these lessons to approach next week with clarity, focus, and discipline.#XAUUSD #Gold #TechnicalAnalysis #PriceAction #Trading