bullish possibilities with XAU/USD

1 May 2022

In the picture above, we can see that price broke out the descending channel in an impulsive manner and is currently retesting the breakout area. Another thing i noticed from price is that it broke structure (bearish structure to be specific) and its common for price to retest the earliest support or resistance zone before the breakout, pin bar/doji candle stick formed before the breakout. So basically before we see strong bullish pressure i expect price to retest the nearest support structure before going up. Remember its NFP week, risk management is a must.