XAUUSD Bullish Trend Continuation

The higher timeframe chart (1-hour) displays a robust bullish trend, characterized by higher highs and higher lows. This outlook is reinforced by the lower timeframe chart (5-minute), suggesting potential upward continuation.

MARKET STRUCTURE

The higher timeframe chart showcases a bullish market structure, with consistent breaks above previous highs. The lower timeframe chart aligns with this structure, exhibiting minor pullbacks followed by upward continuations. This structural alignment across timeframes supports a bullish bias.

LIQUIDITY ZONE

Liquidity zones are identified below recent lows and above recent highs on the higher timeframe chart, indicating potential areas for price retreats before continuing upward. The lower timeframe chart also reveals liquidity sweeps, causing short-term reversals that ultimately confirm bullish momentum.

ORDER BLOCKS & FVG

Numerous fair value gaps (FVG) are present on both timeframes, acting as potential support zones. Order blocks coincide with FVGs, providing confluence for bullish entry signals. This alignment further supports the bullish trend continuation.

PRICE ACTION ANALYSIS

Candlestick patterns on both charts reveal bullish engulfing patterns, indicating strong buying pressure. Trend lines in the lower timeframe show a clear upward channel, while support/resistance levels on both charts provide potential areas for price reactions.

TRADE IDEA

Given the bullish alignment across timeframes:

ENTRY POINT & CRITERIA

Wait for a sweep of sell-side liquidity near a lower timeframe support or order block (around 2760). Look for bullish confirmation through candlestick patterns (e.g., bullish engulfing or strong rejection candle).

STOPLOSS

Place the stop loss slightly below the recent swing low (~2750).

TAKE PROFIT TARGETS

- Set Take Profit 1 at 2780 (next key resistance level).
- Consider Take Profit 2 at 2800 (should the trend continue).


INVALIDATION CRITERIA

If price breaks and closes below 2750 or forms consecutive bearish candlesticks, the trade setup is invalid. Re-evaluate market alignment before considering re-entry.

REMINDER

Always wait for confirmation and avoid impulsive entries to safeguard against false signals.