An additional indicator supporting a decline in XAU/USD is a resistance line test on the RSI. Another confirmation comes from a rebound off the bearish channel's upper boundary.
Key Levels and Scenarios:
- January 10, 2025:
- Bearish Continuation: A breakout below 2605 would confirm a breakdown of the “Wedge” pattern’s lower boundary, signaling a deeper decline with targets below 2565.
- Invalidation: A strong price surge beyond 2715 would negate the bearish outlook, suggesting continued growth toward 2755 or higher.
- Correction Potential:
- A short-term bullish correction may test resistance near 2690, after which the downtrend is expected to resume toward the 2565 target.
Summary:
Watch for a break below 2605 to confirm further bearish momentum, while a sustained move above 2715 would signal a shift toward bullish continuation.