XAU/USD – Bullish Reversal Setup in Progress Date: July 8, 2025

XAU/USD – Bullish Reversal Setup in Progress
Date: July 8, 2025 | Source: MQL_CodedPips | Chart Type: Candlestick (H1/H4 range assumed)

Technical Overview:
The current price action in XAU/USD is exhibiting signs of an early-stage reversal structure following a sharp decline. Price has reached a key intraday support zone around $3,298, where previous liquidity grabs and reaction levels have been observed.

Key Technical Highlights:
🔹 Support Zone Holding (~$3,295–$3,300):
Price is consolidating around a previously validated support zone. This region acted as a short-term demand area in the past and is now showing signs of a potential base formation.

🔹 Projected Inverse Pattern (Double Bottom/Accumulation):
The dotted projection on the chart indicates a potential W-pattern or liquidity sweep reversal, suggesting that smart money may be accumulating positions before a bullish continuation.

🔹 Price Structure & Liquidity Engineering:
The recent low could be interpreted as a sell-side liquidity sweep, grabbing stop-losses below recent lows. The expectation is for a bounce as sell-side pressure diminishes and buy-side interest steps in.

🔹 Target Area (~$3,360):
The upside projection targets the $3,360–$3,370 resistance zone, which aligns with a prior structural high and volume node. A clean break above this level may open the door for a continuation towards $3,400, depending on upcoming fundamentals.

🔹 Fundamental Risk Markers:
Two economic event icons (including a U.S. flag) mark upcoming high-impact news, likely NFP or inflation data. Volatility is expected, which may either confirm or invalidate the projected move.

Technical Bias: Bullish (Short-term)
Entry Consideration: On rejection confirmation from the lower support or a break of neckline (~$3,310).

Invalidation: Break and close below $3,280 (would invalidate reversal structure).

Target: $3,360–$3,370.

Risk Catalyst: U.S. data releases.