XAUUSD Short: Correction Phase Will ContinueHello, traders! The prior market structure for XAUUSD was a bearish descending channel. This trend was decisively reversed by a bullish initiative from the pivot point low near the demand zone 2, which triggered a breakout and established the current bullish market phase, shifting control to the buyers.
Currently, the price auction is being guided by a well-defined ascending channel. A strong impulse has carried XAUUSD to the upper boundary of this channel, which represents dynamic resistance. The market is now testing this ceiling after a sustained rally, a key area where sellers may emerge to initiate a corrective phase against the dominant uptrend.
The primary scenario anticipates a short-term corrective move from the channel's resistance. The expectation is that the upper boundary will hold, leading to a rejection and a downward rotation back towards the channel's median. A failure to break higher would confirm that a temporary pause in the uptrend is likely. The take-profit is therefore set at 3555 points, targeting an intermediate liquidity level. Manage your risk!
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