Hey Traders,
Gold is testing a confluence of resistance levels around 3,322 – including the 0.618 Fibonacci retracement and descending channel resistance. Despite short-term recovery, price remains within a bearish structure, and sellers may re-enter at this zone unless a strong breakout occurs.
Current Market Conditions:
Price is respecting a clear descending channel and has now approached the upper boundary.
The 0.618 Fibonacci level near 3,322 aligns with horizontal resistance, creating a high-confluence sell zone.
Momentum has slowed on the way up, indicating potential exhaustion from bulls.
Unless 3,322 is broken decisively, the bearish structure remains intact.
Fundamental Analysis/Outlook:
Gold remains caught between conflicting macro forces. Hawkish Fed expectations and a strong U.S. dollar (DXY rebound) weigh on XAUUSD. However, mild safe-haven flows persist due to global geopolitical instability and slowing economic data from Europe and China. Today’s upcoming Fed commentary could tip the scales. A dovish tilt could weaken the dollar and favour upside; otherwise, downside may resume.
Targets:
TP1: 3,292.05
TP2: 3,259.41
TP3: Below - watch for Fib extension to around 3,240
Risk Management:
Stop-loss: Above 3,322.11 (channel and Fib invalidation zone)
Risk-to-Reward: Favouring minimum 1:2, scale in only on bearish confirmation (engulfing or rejection candles)
Technical Outlook:
This is a textbook bearish retest setup inside a descending channel. The rejection from the 0.618 level adds confluence for sellers. A break and close above 3,322 would flip structure bullish, targeting 3,351 and 3,375. Until then, the path of least resistance remains to the downside.
Conclusion:
Gold is at a critical decision point. A rejection at 3,322 sets the stage for a deeper sell-off, especially if DXY continues strengthening. Be patient and wait for confirmation—this zone could offer a strong risk-defined short setup.
Sign-off:
“In markets, clarity often lies just beyond the fear. Trade the levels, not the noise.”
💬 Share your take below, boost this idea, and follow for more timely setups. Trade smart!
Gold is testing a confluence of resistance levels around 3,322 – including the 0.618 Fibonacci retracement and descending channel resistance. Despite short-term recovery, price remains within a bearish structure, and sellers may re-enter at this zone unless a strong breakout occurs.
Current Market Conditions:
Price is respecting a clear descending channel and has now approached the upper boundary.
The 0.618 Fibonacci level near 3,322 aligns with horizontal resistance, creating a high-confluence sell zone.
Momentum has slowed on the way up, indicating potential exhaustion from bulls.
Unless 3,322 is broken decisively, the bearish structure remains intact.
Fundamental Analysis/Outlook:
Gold remains caught between conflicting macro forces. Hawkish Fed expectations and a strong U.S. dollar (DXY rebound) weigh on XAUUSD. However, mild safe-haven flows persist due to global geopolitical instability and slowing economic data from Europe and China. Today’s upcoming Fed commentary could tip the scales. A dovish tilt could weaken the dollar and favour upside; otherwise, downside may resume.
Targets:
TP1: 3,292.05
TP2: 3,259.41
TP3: Below - watch for Fib extension to around 3,240
Risk Management:
Stop-loss: Above 3,322.11 (channel and Fib invalidation zone)
Risk-to-Reward: Favouring minimum 1:2, scale in only on bearish confirmation (engulfing or rejection candles)
Technical Outlook:
This is a textbook bearish retest setup inside a descending channel. The rejection from the 0.618 level adds confluence for sellers. A break and close above 3,322 would flip structure bullish, targeting 3,351 and 3,375. Until then, the path of least resistance remains to the downside.
Conclusion:
Gold is at a critical decision point. A rejection at 3,322 sets the stage for a deeper sell-off, especially if DXY continues strengthening. Be patient and wait for confirmation—this zone could offer a strong risk-defined short setup.
Sign-off:
“In markets, clarity often lies just beyond the fear. Trade the levels, not the noise.”
💬 Share your take below, boost this idea, and follow for more timely setups. Trade smart!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.