A key signal suggesting a decline in XAU/USD prices is the resistance test on the Relative Strength Index (RSI). Additionally, a bounce from the lower boundary of the "Triangle" pattern supports this bearish outlook. However, if XAU/USD breaks above the 2675 level, this would invalidate the bearish scenario, signaling continued upward momentum towards 2735.
Currently, there's potential for a brief bullish correction, with XAU/USD possibly testing resistance around 2635. If the price fails to hold, we anticipate a further decline, targeting levels below 2525. A breakdown of the 2580 support level, especially with a close below it, would reinforce the bearish trend, suggesting increased downward momentum.
To summarize, watch for resistance around 2635 and 2675. A breakout above 2675 would reverse the bearish outlook, aiming for a rise towards 2735. Conversely, failure to hold above 2580 strengthens the case for a continued decline, with the next target around 2525.