XAUUSD First Fall, Then Rise Again?

We saw a big rise on XAUUSD in the last few days but price is still in the descending channel and has approached to the channel’s upper band which acts like a dynamic resistance level (The previous analysis of XAUUSD is attached below).

Moreover, there is a resistance level from February 2021 and price got rejected by that and also the yesterday’s candle has been closed as the form of a reversal Shooting Star pattern which can be a bearish signal for us.

CCI (Commodity Channel Index) shows that price is existing from the overbought area and there is a negative regular divergence between the price peaks and the indicator’s peaks.

I expect a fall in price around 1775-1790 to retrace the bullish move and visit the demand zone, then if there was any upside pressure we can enter long with the targets at 1875 and 1900.

Otherwise, if today’s candle closes above the shooting star candle stick, the bearish scenario gets canceled and we might see an upside breakout on the descending channel’s upper band and price entering to the new parallel channel with a sharp rise at least to 1875.

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