As of July 22, 2025, XAU/USD (Gold/US Dollar) has shown a strong upward move on the 1-hour chart, temporarily stabilizing near the key level of $3400. The breakout above last week’s range confirms a clear bullish trend. In this article, based on technical analysis, we examine the current market structure and outlook using various indicators including moving averages, MACD, ADX, and volume.
The chart shows the price trading well above both the short-term (blue) and long-term (red) moving averages, clearly indicating an upward trend. Notably, the 20MA is gradually rising and supporting the price — a positive signal for long position holders and evidence of continued dip buying.
Additionally, the 200MA (red) is holding steady near $3350, likely serving as a mid-term support level. The current configuration of moving averages confirms a bullish bias in the market.
Looking at the MACD (Moving Average Convergence Divergence), the MACD line (yellow) remains above the signal line (red), with the histogram stable in positive territory. This is a classic momentum continuation signal in an uptrend, and MACD confirms that the bullish trend is holding.
Importantly, during the previous dip, MACD rebounded without crossing below the zero line, reinforcing the technical support’s reliability.
The ADX (Average Directional Index) is hovering around the high level of 70, indicating a very strong trend. Generally, a reading above 25 signifies strength, so a value of 70 is exceptionally strong.
Such high ADX levels suggest strong momentum continuity, implying that trend-following strategies are more effective than counter-trend approaches.
The recent price surge was accompanied by a sharp increase in volume, confirming a “volume-backed rally.” This indicates the buying pressure is likely driven by genuine demand or new inflows rather than being a temporary reaction.
Conversely, during the current sideways phase, volume appears to be slightly declining — suggesting a potential “consolidation phase.” If volume picks up again, it may signal the resumption of the upward trend.
| Level | Price | Meaning / Rationale |
|---|---|---|
| Short-Term Resistance | $3400 | Recent high, psychological level |
| Next Target | $3415 | Coincides with late June 2025 high |
| Short-Term Support | $3380 | Near 20MA, recent pullback zone |
| Mid-Term Support | $3350 | Near 200MA, prior rebound area |
While XAU/USD shows signs of short-term overheating, the technical outlook still points to a sustained uptrend. In particular, the high ADX level strongly supports trend reliability.
Key points to watch going forward:
For short-term trades especially, identifying dip-buying opportunities and confirming a breakout above $3400 will be crucial for profit-taking. Conversely, if volume continues to decline and consolidation persists, confirming a rebound at support levels becomes essential.
Disclaimer: This article is intended for informational purposes only and does not constitute specific investment advice. Please make final decisions at your own discretion.
This article is intended for informational purposes only and does not constitute financial or investment advice. The analyses and strategies mentioned are based on past data and current market conditions, and may be subject to change in the future. When making investment decisions, always conduct your own research and consult a professional if necessary.
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