XAUUSD: Sellers Maintain Control and Opens Path Toward 4,000$

Jun 11

Hello everyone, here is my breakdown of the current XAUUSD setup.

Market Analysis

XAUUSD has been trading inside a well-defined descending channel after breaking down from a broad consolidation range near the recent highs. Multiple bearish breakouts below key support levels confirmed strong selling pressure, while every recovery attempt was rejected by the channel resistance, keeping the overall trend firmly bearish.

Currently, XAUUSD is trading below the 4,120 Resistance Zone while holding above the 4,000 Support Zone. Price recently broke beneath the lower boundary of the descending channel and successfully retested the broken structure from below, confirming a bearish continuation. The latest rebound into resistance was rejected again, signaling that sellers remain in control.

My Scenario & Strategy

My scenario: as long as XAUUSD remains below the 4,120 Resistance Zone and continues to respect the former channel support as new resistance, the bearish scenario remains valid. A continuation lower could push price toward the 4,000 Support Zone (TP1) for a retest.

However, if XAUUSD breaks back above the 4,120 Resistance Zone and reclaims the broken channel structure, the bearish outlook would weaken and a stronger recovery could develop.

That’s the setup I’m tracking. Thank you for your attention, and always manage your risk.

Jun 12

Trade active

So far we see an attempt to recover and return to the descending channel. If the price can consolidate there, then our scenario is canceled. So let's watch!

Jun 14

Trade closed manually

We can see that the price is still holding at a level that cancels our verdict and may indicate a recovery phase!