A potential decrease in XAU/USD is signaled by two key factors:
- A test of the resistance line on the RSI indicator.
- A rebound from the upper boundary of the bearish channel.
The downtrend scenario for January 7, 2025 will be invalidated if the price surges above 2675, breaking through the resistance zone. Such a breakout would suggest continued upward movement, targeting levels above 2735.
In contrast, if XAU/USD breaks below the support area near 2595 and closes lower, it will confirm a breach of the lower boundary of the bullish correction channel, likely accelerating the decline.
The price may initially attempt a bullish correction, testing the resistance near 2645. However, further declines are anticipated, with a target below 2545. Any significant price increase above 2675 would cancel the bearish outlook, signaling a continued rally in gold prices toward 2735 or higher.