An additional sign for a potential XAU/USD decline is testing the resistance line on the RSI indicator. Another key signal is a bounce from the top edge of the bearish channel.
Key Levels:
- Critical Resistance Breakout (Invalidates SELL): If XAU/USD surpasses 2705, it signals a breakout of the resistance zone, with potential growth toward 2755 and beyond.
- Target for Decline: A drop below 2635 confirms a breakout of the “Wedge” reversal pattern, signaling further decline toward levels under 2555.
Forecast Highlights:
- A short-term bullish correction could test resistance at 2685, but a continuation of the downward trend remains likely.
- The scenario for falling prices remains valid unless a strong price surge breaches the 2705 level.
This concise analysis outlines the key factors for monitoring XAU/USD's movement as of 09-Jan-2025.