As of October 2023, the market structure for XAUUSD (Gold against the US Dollar) has shown a bullish trend after a series of consolidations. The price action has formed higher highs and higher lows, indicating a strong upward momentum. Key economic factors, including inflation concerns and geopolitical tensions, have further supported the demand for gold as a safe haven asset.
Recent price oscillations between $1,800 and $1,920 mark a critical phase of accumulation, culminating in a breakout above the previous resistance level of $1,920. The subsequent retest of this level has confirmed its new role as support, reinforcing the bullish market structure.
If XAUUSD maintains support above the $1,900 level, traders could consider entering long positions targeting the $1,950 resistance. A breakout and close above $1,950 with volume could signal the next bullish leg toward $2,000.
Should the price fail to hold above $1,900 and show signs of weakness, a short trade could be initiated with targets at the $1,850 support level. A break below $1,850 could open the door for further declines towards $1,800.
In the event of consolidation, traders can adopt a range trading strategy between $1,900 and $1,950. Buying at $1,900 and selling at $1,950, while watching for breakout signals, could yield consistent profits in a sideways market.
The primary risks for trading XAUUSD include: