XAUUSD Consolidation with CPI Impact –Potential Drop to Support

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Resistance & Support Zones

The price of gold (XAUUSD) is consolidating within a range, with resistance near $2,930 and support following an ascending trendline.
Resistance areas (marked in red) indicate where price has struggled to break above.
Support levels (marked in blue) suggest buying pressure and trend continuation.
CPI Influence on Gold

The Consumer Price Index (CPI) event marked on the chart suggests that inflation data might have influenced price volatility.
Gold typically reacts strongly to CPI releases, as inflation affects Fed policy, impacting USD strength and gold prices.
Technical Outlook

The chart suggests potential rejection from resistance, indicating a possible downward move.
A break below $2,900 could confirm bearish momentum, potentially testing the rising trendline.
If buyers defend support, gold might rebound and reattempt resistance.
Trading Plan Considerations

Bearish Scenario: Short position on rejection from resistance, targeting the trendline.
Bullish Scenario: If price holds above trendline, a bounce towards resistance is likely.

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