Hey Traders,
The XAUUSD H1 chart shows a clear bullish trend from 20 Aug 09:00 to 22 Aug, with price climbing from ∼4480 to 4622.92. The candles are consistently trading above the rising red MA, confirming buyers remain in control on the hourly timeframe. The most recent candles show a tight consolidation near 4620-4635, suggesting a pause before the next leg. Momentum indicators support continuation but with caution. RSI(14) at 68.65 is elevated and approaching the 70 overbought zone. It has not crossed down yet, so momentum is still positive, but there’s limited room before profit-taking appears. CCI(14) at 87.31 is in positive territory but has rolled off recent highs, indicating cooling momentum after the rally to 4634.91. Bull Power (13) at 27.395 remains positive with strong red histogram bars, showing bulls are still dominant. However, the peaks are flattening, which signals bullish exhaustion if not followed by a breakout. The BW MFI 0.26 combined with high Force Index 12901.258 confirms volume is supporting the uptrend, but the divergence between falling Force and rising price could be an early warning. Strategic view: The bias remains bullish while price holds above the rising MA near 4595. A break and close above 4634.91 opens the path toward 4688.80, the next resistance. Conversely, a drop below 4595 with RSI falling under 60 would signal ah pullback toward 4502.80 to reset indicators. Trade approach: Favor dips to the MA for long entries with tight stops. Avoid chasing above 4635 unless volume confirms. Monitor RSI divergence for the first sign of a reversal.
