Technical analysis by Henrybillion about Symbol PAXG on 7/22/2025

[XAUUSD – July 22] Gold Consolidates Before Breakout – A Prime Buy-the-Dip Opportunity On the 1H chart, XAUUSD continues to display a bullish market structure with a series of higher highs and higher lows. After a strong rally from the 3.618 Fibonacci extension zone at 3,340.71, price reached a local high at 3,398.36 and is now undergoing a sideways consolidation just below resistance. Technical Breakdown: Price Structure: Gold remains within a bullish trend. The current pullback appears healthy and corrective, forming a potential launchpad for the next leg higher. Fibonacci Retracement: Price is hovering around the 0.618 (3,388.39) and 0.786 (3,390.49) retracement zones of the previous bullish leg. This area acts as a strong short-term support zone – if held, it may trigger a continuation move. Key Support Levels: Short-term: 3,382.42 (Fibonacci 1.0) Medium-term: 3,340.71 (Fibonacci extension 3.618) Long-term: 3,321.58 (major swing low) Key Resistance Levels: Immediate: 3,398.36 (recent local top) If broken, potential targets lie around 3,420–3,430 based on projected trendline extensions. EMA & RSI: Although not displayed here, price action suggests that gold is trading above both the EMA20 and EMA50 – a bullish sign. If RSI forms a mild bearish divergence in the overbought zone, a short-term dip to test Fibonacci support is likely before continuation. Trading Strategy: Scenario 1 – Buy the Dip (Primary Setup): Wait for price to pull back toward 3,382 – 3,385 (Fibonacci 1.0). Set buy limit entries, SL below 3,375, TP1 at 3,398, TP2 at 3,420. Scenario 2 – Breakout Trade: If price breaks and closes above 3,398 with strong volume, consider a breakout buy. SL below 3,385, target 3,420–3,430. Scenario 3 – Bearish Reversal (Low Probability): If price decisively breaks below 3,380, gold may retest the 3,340–3,350 support zone. Only consider short positions with confirmation from volume or reversal patterns. Conclusion: The trend remains bullish. The current pullback offers a favorable opportunity to rejoin the uptrend. Watch the 3,382–3,385 area closely as it may serve as the next springboard higher. If you found this strategy useful, be sure to follow for more trade setups and save this post for your watchlist. What are your thoughts on today’s gold setup? Let’s discuss in the comments below.