Gold price (XAUUSD) faces strong resistance at the 3700 level. Technical analysis highlights possible bearish correction unless a breakout occurs above 3708.”
XAUUSD (Gold) H1 Technical Analysis – Bearish Correction or Breakout Ahead?
XAUUSD Technical Analysis – Gold Price Outlook
Gold (XAUUSD) remains the most closely watched asset in global financial markets. In this latest XAUUSD technical analysis, we examine how the gold price is reacting near the critical 3700 resistance zone and what traders can expect in terms of support, breakout levels, and trend direction. This analysis highlights both bullish and bearish scenarios, giving forex traders clear entry, stop-loss, and take-profit levels.
XAUUSD Technical Analysis – Gold Price Outlook at 3700 Resistance
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Instrument: XAUUSD (Gold vs. US Dollar)
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Timeframe: H1 (Hourly Chart)
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Price Level: 3691.82 (at the time of writing)
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Trend Bias: Bullish overall, but showing short-term weakness
XAUUSD Technical Patterns and Price Action Signals
Price has tested the 3700 level multiple times but failed to break convincingly. This indicates a strong supply zone where sellers are active.
2. RSI Divergence
The Relative Strength Index (RSI 14) sits at 56.96. Although neutral, a bearish divergence has formed (higher high in price vs. lower high in RSI), signaling weakening momentum.
3. Parabolic SAR
The Parabolic SAR remains below the candles, confirming bullish bias. However, a bearish flip is possible if price stays under 3700.
4. Chart Pattern
A double-top pattern is emerging near 3700. Unless buyers push above 3708, a short-term bearish correction could follow.
📈 Trade Setups
🔻 Bearish Setup (Correction Scenario)
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Sell Entry: 3691 – 3695 (current range or rejection at 3698 – 3700)
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Stop Loss (SL): 3708 (above last high)
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Take Profit (TP):
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TP1: 3673
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TP2: 3655
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✅ Reasoning: RSI divergence + resistance rejection at 3700 increases bearish probability.
🔺 Bullish Setup (Breakout Scenario)
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Buy Entry: 3708 – 3710 (after confirmed breakout)
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Stop Loss (SL): 3690
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Take Profit (TP):
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TP1: 3725
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TP2: 3740
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✅ Reasoning: A clean breakout above 3708 would confirm continuation of the bullish rally.
🏆 Conclusion
Gold remains bullish overall but faces key resistance at 3700. Traders should monitor price action carefully:
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Below 3700 → short-term bearish correction likely.
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Above 3708 → bullish breakout continuation expected.
As always, apply strict risk management and stay updated on economic events affecting gold volatility.
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