XAUUSD – Bearish Reversal Setup at Key ResistanceOANDA:XAUUSD has reached a key overextended zone after a strong bullish rally, showing signs of exhaustion near the upper boundary of the pitchfork channel. Daily candles are printing wicks into resistance, indicating potential supply.
Bearish Confluences:
Price rejection at upper pitchfork channel resistance
Extended distance from EMA ribbon (mean reversion likely)
Slowing bullish momentum with smaller daily candles
Bearish setup triggered at local resistance zone
Fibonacci Targets (retracement from recent swing low to high):
🎯 Target 1 – 0.382: $3,716
🎯 Target 2 – 0.5: $3,629
🎯 Target 3 – 0.618: $3,567
Invalidation:
Daily close above $3,895 resistance (red zone) would invalidate this setup.
