XAUUSD shows potential for upward movement based on current technical indicators. A rebound from the lower boundary of the bullish channel suggests price strength, supported by a test of the support line on the RSI. These are strong signs that bullish momentum could continue.
Price action is approaching the 3320 support zone. If this level holds, a move upward is likely, with the next target around 3425. A confirmed breakout above 3425 and a close above it on the daily chart would reinforce the bullish trend, opening the path toward 3525 as the next key resistance level.
However, if price breaks below the 3295 level, this would invalidate the bullish scenario and point to further downside. In that case, the price could slide toward the 3245 area or lower, signaling a shift in sentiment and a potential bearish trend forming.
⚠️ Key levels to watch:
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Support: 3320, critical break at 3295
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Resistance: 3425, next target 3525
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Bearish scenario: Break below 3295 → target 3245
Traders should monitor price behavior around these zones. A firm close above 3425 could confirm the bullish setup, while a drop below 3295 would suggest weakness and the potential for continued decline.
Market participants are advised to wait for confirmation before entering positions, as price reactions around support and resistance will be key to the next directional move.