1302.5/1307.7 is a tasty area for longs, traders...

XAU/USD (GOLD):

In recent sessions, the H4 candles extended Friday’s losses and crossed paths with lows at 1308.4, bolstered by a stronger US dollar. Bottoming just ahead of daily support at 1307.7, bullion mildly pared losses into the close.

The current daily support, coupled with nearby weekly support at 1302.5: the 2018 yearly opening level, is an area active buyers likely inhabit (yellow zone based on the H4 timeframe). A bounce from here has daily supply to target at 1332.6-1322.3. It may also interest traders to note within the current daily supply zone is a resistance level priced in at 1325.4. Also note how strongly this level capped price last week.

Areas of consideration:

Keeping things simple this morning, the 1302.5/1307.7 area marked on the H4 timeframe is of interest this morning. A H4 bullish candlestick pattern (entry/stop parameters can be defined off of this structure) emerging from this region would, according to our technical studies, be considered a strong buy signal. Arguably, though, many traders will feel the combination of a weekly and daily support is sufficient evidence to trade, without waiting for additional candle confirmation, simply entering and placing stops using the limits of the zone.