XAU/USD Technical Analysis (H1 Chart)
The XAU/USD H1 chart currently reflects a period of heightened volatility, with price showing both bullish attempts and sharp bearish rejections. Initially, gold experienced a steady rally that began around September 11, where the candles gradually built momentum, crossing above the shorter-term moving averages (blue and red) and confirming bullish control. This upward push extended into mid-September, with price maintaining strength above the green medium-term moving average and showing consistent higher highs and higher lows. However, after peaking just below the 3705 level, momentum weakened and sellers stepped in aggressively. This shift is highlighted by a strong bearish rejection candle with a long upper wick, indicating failed attempts by buyers to sustain higher levels. Following that, price pulled back significantly, breaking below the blue and red moving averages and now hovering just above the green line, suggesting growing downside pressure. The RSI (14) indicator is currently at 40, which points to weakening bullish momentum and hints at possible bearish continuation if sentiment remains heavy. Momentum oscillators also show a loss of strength, with values pulling back after an earlier overbought signal, aligning with the recent price correction. The moving averages have begun to flatten, and the shorter-term averages are crossing downward toward the medium-term line, which could develop into a bearish alignment if selling continues. This transition phase reflects indecision, but with a bias toward sellers gaining control. From a structural perspective, immediate resistance is seen around the 3680–3690 zone, where recent rejections have occurred, while the key support lies near 3650. A clear break below this support could open the path toward 3630, while reclaiming 3690 would be necessary for bulls to regain momentum. Overall, the H1 chart for XAU/USD suggests that the bullish run has stalled, and the market is now in a corrective phase with bearish pressure increasing. The coming sessions will be critical, as the ability of price to hold above 3650 or break below it will likely dictate the next directional move.
