Bearish outlook on XAUUSD: 20 September 2022

On the H1 timeframe, prices are testing a key resistance level at 1693, in line with the 50% Fibonacci retracement . A pullback to the resistance zone provides and opportunity to play the drop to the next support zone at 1618, in line with the 78.6% Fibonacci extension . A break below our downside confirmation level of 1654 could provide bearish acceleration to the 1618 support zone . Stochastic is testing resistance as well, supporting the bearish bias.