XAUUSD has been having a strong upward momentum on the H4 chart. Today’s first two H4 candles came out as Bearish candles. However, the price seems to have had a pause at an important level of Support. If the current H4 candle comes out as an H4 Engulfing candle, then the buyers will be waiting for an H1 breakout at yesterday’s higher high to take a long entry. Let us find out the levels on the H4 chart.

Have a look at today’s first two candles. Both of them have been Bearish. However, the level of 1327.25 has been held so far and the price has already reacted to that level. If this level produces an H4 Engulfing candle and then we get an H1 breakout at the level of 1334.39, then buying the pair would get us some green pips. Let us have a look at the summary of the trade...

• Buy Stop Order: 1334.39
• Stop Loss: 1327.25
• Take Profit: 1345.55
• Validity: 72 hours
• Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable

Yesterday’s FOMC meeting gave a big Bullish boost on XAUUSD. I assume this would continue for some days even for some weeks. Although, this is nothing to do with today’s setup though. Today’s correction and Support level suggest that XAUUSD might take a Bull journey as well. Yesterday’s FOMC boost would put an effect and increases the price of XAUUSD even at the bigger charts such as the Daily, Weekly etc. Let us see how it goes. Meanwhile, let’s concentrate on today’s trade setup.