A strong buy signal for XAU/USD comes from the Relative Strength Index (RSI) testing its support line. Additionally, a bounce off the lower edge of the bullish channel suggests further growth. However, if prices drop and break below 2690 on October 25, 2024, this would invalidate the bullish scenario, pointing to a potential decline towards 2645.
If XAU/USD breaks through the resistance area and closes above 2775, this could signal accelerated growth. Before that, a minor bearish correction could push prices down to test the support around 2720. After this correction, expect a continuation of the bullish trend with a target beyond 2795.
In summary, if XAU/USD breaks below 2690, the outlook changes, signaling further decline towards 2645. Otherwise, resistance breakouts and closes above 2775 would support the bullish outlook.