The RSI indicator’s test of the descending trend line and a rebound from the descending channel's upper border both suggest a potential decline in XAU/USD prices. If XAU/USD fails to break the 3040 resistance level by March 26, 2025, the bearish scenario will remain intact. A breakout above this level would signal the asset's price is likely to continue rising, aiming for levels above 3085.
Expect an acceleration in the decline of XAU/USD if the price falls below the 3005 support level. A drop below this support could further confirm the bearish trend.
In contrast, should XAU/USD show signs of a bullish correction, we might see a test of resistance around 3025, but this would be short-lived. If the price struggles to stay above this level, a deeper decline is expected, potentially reaching below 2985.
The key levels to watch are:
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Resistance: 3040 (Break above = bullish trend continuation)
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Support: 3005 (Break below = bearish continuation)
In summary, the current outlook for XAU/USD is leaning towards a SELL position unless there is a strong break above 3040, which could trigger a reversal and push prices higher towards the 3085 zone.