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XAUUSD: Wave 5 is still active, gold continues to maintain a bullish structure
Hi everyone, this is my opinion on the current XAUUSD setup.
market analysis
Gold continues to maintain a constructive callback structure, and the current 5 waves still appear to be active rather than completed. After previously bouncing off lower lows, the price formed a series of higher lows while respecting the ascending trendline below, maintaining a bullish structure.
What’s important here is that gold not only remains above short-term support, but is also gradually pushing towards higher resistance levels. This behavior suggests buyers remain active and the market may be preparing to extend its upside again rather than pull back into a deeper correction.
Looking at the chart, the first major hurdle is located near 4601, an area that has been identified as a strong resistance area. If the price can continue to hold above the current structure and confirm a breakout of this level, the next area to watch is around 4717, where there is another area of strong resistance. Furthermore, broader upside targets remain around the 5,000 psychological zone, which also coincides with the 1.618 Fibonacci extension near 4,968.
Therefore, for now, the technical charts still support the view that gold is in an active bullish trend, as wave 5 has yet to show a clear signal of completion.
Meanwhile, the uptrend line remains the most important guide for this setup. As long as the price continues to adhere to this support line, the bullish continuation view remains valid. But if the market falls below major support structures, buying will quickly diminish.
Key price areas to watch
Current price range: around 4543
Trend Line Support: Still Holding
Immediate support/bullish protection zone: 4483
The lowest strong support level: 4346
The first strong resistance: 4601
Next resistance zone: 4630–4717
Key upside targets: 4968–5000
My scenarios and strategies
My preferred option is to continue buying the trend as the current structure still suggests that Wave 5 is underway.
As long as XAUUSD remains above the 4483 support and continues to respect the uptrend line, I still prefer the scenario for a continuation of the uptrend. If gold prices continue to move higher from the current area, a push towards 4601 may occur first. If this resistance is breached, the next upward path would be towards 4630-4717 and then towards the broader target of 4968-5000.
However, the bullish setup should be invalidated if the price breaks below the major support zone, especially if gold falls below the 4483 zone and fails to recover above it. In this case, the structure will not support immediate buying and the market may move further towards 4346 before considering a new bullish setup.
Currently, the trend remains constructive, wave 5 remains, the market continues to favor buying, and support remains intact.
This is the setup I’m currently monitoring. Thank you for reading and always manage your risks carefully.
