XAUUSD

Hello Traders! 👋

What are your thoughts on Gold?

Gold remains under selling pressure after breaking below a major ascending trendline that had supported the long-term uptrend for several months. The recent rebound appears to be nothing more than a corrective pullback, with price now approaching a strong confluence resistance zone.
Several technical factors make this area particularly significant:
The previous horizontal support has now turned into resistance.
The broken ascending trendline is acting as dynamic resistance.
The resistance zone aligns with the 50% Fibonacci retracement, increasing the probability of a bearish reaction.
As long as price remains below this resistance zone, the broader outlook continues to favor the downside. Price is expected to test this area, where renewed selling pressure may emerge. If the resistance holds and price is rejected, the next bearish leg is expected to begin, with the 61.8% Fibonacci retracement around 3,730 serving as the primary medium-term downside target.
However, if buyers manage to secure a decisive daily close above the resistance zone, the current bearish scenario will be invalidated, increasing the likelihood of a deeper corrective rally.

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