"Gold Approaching Order Block – Bounce or Breakdown Toward $3,33

Technical analysis of Gold (XAU/USD) 1-hour chart analysis, showing a critical decision zone with two possible scenarios: a bullish bounce or a bearish continuation. Here's a breakdown of the idea illustrated in the chart:


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> Gold is approaching a key zone (order block), with a potential for either a strong bullish reversal or a breakdown toward a lower support level.




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Key Technical Highlights

1. Order Block (Supply/Demand Zone)

A horizontal gray zone is marked as an "order block" — a price area where previous aggressive buying occurred.

Price is currently revisiting this zone, marked with a yellow circle, signaling a potential reaction point.


2. Support & Resistance

Support level: Marked around $3,370 - $3,360.

Deeper target support: $3,333.827, shown as a downside target point in case of bearish continuation.

Price recently failed to hold above $3,407 (EMA 50), showing short-term bearish pressure.


3. Scenarios

Bullish Scenario:

If price reacts positively at the order block, we could see a rebound toward $3,509.60 (top blue target line).

This would represent a +3.70% move (approx. $125).

Likely to happen if buyers defend the support zone and price moves above the moving averages again.


Bearish Scenario:

If the support/order block fails, price may fall further to test $3,333.82 (target support).

RSI is weak (below 50), suggesting momentum is fading.



4. Indicators

EMA 50 (red) and EMA 200 (blue) are both present; price is nearing the 200 EMA, which might act as dynamic support.

RSI (14) is at 42.37, near oversold, but still bearish-leaning.



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Trading Insight

The yellow circle marks a decision point.

Look for price action confirmation:

Bullish candles + RSI reversal = possible long entry.

Break below 200 EMA = bearish breakdown likely.




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