XAUUSD H4 Technical Analysis: Bullish Recovery Targets Swap Zone After Regular Flat Completion

Introduction

Gold (XAUUSD) has staged a strong rebound after finding support near the lower boundary of the corrective structure. The chart suggests a Regular Flat (A-B-C) correction may be nearing completion, while the bullish momentum is supported by a completed Leading Diagonal and strengthening Awesome Oscillator (AO) histogram.

Technical Outlook

Leading Diagonal Completed

The market formed a clear five-wave Leading Diagonal, indicating the beginning of a new impulsive cycle. After wave (v) completed, price entered a corrective A-B-C Regular Flat pattern.

Regular Flat Near Completion

Wave (b) extended close to the origin of wave (a), which is characteristic of a Regular Flat correction. Price has now reacted strongly from wave (c), suggesting buyers are regaining control.

A successful break above the recent swing highs would confirm that the correction has ended and a new bullish impulse is underway.

Swap Zone Remains the Major Resistance

The green Swap Zone is the key resistance level to monitor.

• A sustained breakout above this zone would invalidate the bearish structure.
• If buyers maintain momentum, the market is expected to continue toward the projected Regular Flat target.

Momentum Analysis (Awesome Oscillator)

The Awesome Oscillator has shifted back into positive territory with expanding green histogram bars, indicating:

• Increasing bullish momentum.
• Buying pressure is strengthening.
• Momentum supports further upside as long as price remains above recent support.

Key Price Targets

TP1

• 161.8% Fibonacci Extension
• First profit-taking area after a confirmed breakout.

TP2

• 261.8% Fibonacci Extension
• Located near the Swap Zone and the projected completion area of the bullish move.
• This remains the primary upside objective if momentum continues.

Trading Scenario

Bullish Bias

• Buy on pullbacks while price holds above the recent low.
• Confirmation comes from a breakout above nearby resistance.
• Primary targets remain TP1 (161.8%) followed by TP2 (261.8%).

Invalidation

A break below the wave (b)/(c) support area would weaken the bullish outlook and increase the probability of a deeper corrective decline.

Conclusion

XAUUSD H4 continues to favor a bullish recovery after completing a Regular Flat correction. The completed Leading Diagonal, strengthening AO momentum, and bullish price structure all suggest buyers remain in control. As long as support holds, the market is expected to advance toward TP1, with the Swap Zone and TP2 serving as the next major upside objectives.