XAU/USD: Bearish Decline to 3827?OANDA:XAUUSD is exhibiting bearish momentum on the 1-hour chart , with price respecting a downward trendline and pulling back toward the EMA 50 (1H) as dynamic resistance, creating a prime short opportunity near the highlighted entry zone amid ongoing consolidation. This setup suggests continuation of the downtrend if sellers push through toward lower supports. 🎯
Entry zone between 3979-4020 for a sell position. Target at 3827 near the support and take profit zone, yielding a risk-reward ratio greater than 1:2.5 . Set a stop loss on a close above 4035 to manage risk. 🌟 Await confirmation with a bearish close below the entry and rising volume, tapping into gold's sensitivity to USD strength.
Fundamentally , this week features the FOMC meeting on October 29, where the Fed's rate decision could bolster the dollar if hawkish tones prevail. Additionally, outcomes from the ongoing Trump-Xi trade talks—kicking off this week in Asia—could spark major market volatility, potentially pressuring gold if a US-China deal materializes. 💡
📝 Trade Plan:
🎯 Entry Zone: 3979 – 4020 (short setup near resistance)
❌ Stop Loss: Close above 4035
✅ Target: 3827 (support / take-profit zone)
💎 Risk-to-Reward: Greater than 1:2.5, offering an excellent downside opportunity for disciplined traders.
What's your view on this gold drop? Comment below! 👇
