Gold (XAU/USD) H1 Technical Analysis – Market Structure & Price Zones Overview
Market Overview
- Asset: Gold (XAU/USD – Spot)
- Timeframe: 1-Hour (H1)
- Current Price Area: ~4457
- Market Phase: Recovery after a sharp corrective decline
Gold experienced a significant bearish correction in late December, followed by a strong rebound from lower levels. The current price action reflects a V-shaped recovery, placing the market in a transition phase rather than a clear directional trend.
Market Structure (H1)
From a structural perspective, Gold’s recent movement can be categorized into three phases:
1. Expansion Phase
Price previously moved in a strong bullish structure, marked by higher highs and higher lows, indicating sustained buying interest.
2. Corrective Phase
A sharp bearish impulse followed, breaking the prior bullish structure and pushing price into lower demand zones. This move represented a structural reset, not a long-term trend reversal.
3. Recovery Phase (Current)
Since the end of December, price has rebounded steadily, forming a new sequence of short-term higher highs and higher lows. However, this recovery is occurring within a broader corrective environment.
Structural Conclusion:
The market is currently in a range-to-recovery phase, not a clean
bullish or bearish trend.
Bullish and Bearish Price Zones
🟢 Bullish Interest Zones (Demand Areas)
These zones represent areas where price previously attracted buying interest and showed strong reactions:
- 4400–4420: Psychological level and intraday demand
- 4330–4350: Strong demand base formed after the corrective drop
- 4280–4300: Major rejection zone where sell-side pressure was absorbed
These zones remain important reference areas if price revisits lower levels.
🔴 Bearish Interest Zones (Supply Areas)
These zones represent areas where selling pressure previously emerged:
- 4457–4465: Immediate resistance and prior pivot zone
- 4465–4480: Active H1 supply zone where price is currently reacting
- 4515–4540: Previous swing high and higher-timeframe supply
- 4580–4600: Strong historical rejection zone
Price behavior around these areas provides insight into market participation and sentiment.
Current Price Behavior
- Price has formed short-term higher highs and higher lows, indicating recovery momentum.
- As price approaches the 4460–4480 zone, candles are showing upper wicks, suggesting the presence of supply.
- Momentum appears to be slowing, highlighting a balance between buyers and sellers.
This behavior suggests that the market is currently evaluating value, rather than committing to a strong directional move.
Market Sentiment Assessment
- Short-term sentiment: Mildly bullish, supported by recovery structure
- Overall condition: Neutral, due to price trading within a key supply zone
- Volatility context: Compression phase, often preceding expansion
The market is at a decision-making region, where further structure development will clarify directional bias.
Liquidity & Price Dynamics (Conceptual View)
- Previous downside movement likely cleared sell-side liquidity near the 4300 region.
- Areas above recent highs remain potential zones of buy-side liquidity interest.
- The current consolidation may reflect liquidity balancing, common before directional continuation or deeper correction.
