XAUUSD is showing potential for growth, supported by several technical indicators. A key signal is the potential test of the support line on the Relative Strength Index (RSI). Furthermore, a rebound from the lower boundary of the existing bullish channel strengthens this outlook.
The bullish scenario will be invalidated if the price drops and breaks through the 2735 level. This would signal a break of the support zone, potentially leading to a further decline towards the 2685 level.
Conversely, a breakout of the resistance area and a price close above 2805 would likely accelerate the upward trend for XAUUSD. This could lead to a test of the support area around 2770, followed by continued growth with a target above 2865.
A drop below 2735 would negate the bullish forecast and suggest a continuation of the decline, potentially reaching below 2685. Traders should monitor these key levels for potential trading opportunities. This forecast is valid as of January 31, 2025.