XAUUSD is approaching resistance, potential drop!

Price is approaching our first resistance at 1339.70 (horizontal swing high resistance, 61.8% Fibonacci retracement, 100% Fibonacci extension) which coincides with the short term descending resistance line. A strong reaction might occur at this level, pushing price down to our major support at 1326.76 (horizontal swing low support, 100% Fibonacci extension, 61.8% Fibonacci retracement).

Stochastic (34,5,3) is also approaching its major resistance and a reaction off this level might be a good precursor for a potential drop in price.

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