Watching XAUUSD at a critical retest level
Been keeping a close eye on $XAUUSD for the past few sessions and it's looking like we're heading for a really interesting retest. My chart shows the 1900-1905 area has been a significant pivot point in the past, acting as both resistance and support on multiple occasions over the last few months. After the recent leg down, seeing it hover just above this range has me thinking about its potential to either establish a new base or break lower.
From a technical standpoint, if we see a clear break and sustained close below 1895, that would invalidate my current thinking about this being a potential support zone retest. The risk there would be a move towards 1870 quickly, as there isn't much strong historical support until then. Conversely, a strong bounce from here, especially if accompanied by some bullish divergence on the lower timeframes, would suggest that the bulls are willing to defend this area, potentially setting up for another push back towards the 1930s. It's a key spot to watch, and I'm leaning towards patience to see how price interacts with this level over the next day or two.
Agree, that 1900-1905 zone is key. Are you seeing any particular candlestick patterns or volume shifts that might indicate a direction?