XAUUSD strong down opportunity soon 1. Trendline Validity
The current trendline is drawn as a downward channel. However, are there enough touches to validate it as a strong trendline? Sometimes, trendlines can be subjective and might not hold.
2. Support & Resistance Strength
The chart marks a "strong selling zone" at resistance, but does it have historical significance? If this level hasn’t been tested multiple times, it might not be as strong.
The support area is expected to hold, but gold is volatile. Is there a fundamental reason supporting a bounce from there?
3. Alternative Scenarios
What if gold breaks out of the downtrend instead of continuing lower? A breakout above resistance could invalidate the bearish expectation.
Instead of a clean bounce at support, price could consolidate sideways or even break below.
4. Fundamental Factors
Are there any upcoming economic events (such as FOMC meetings, CPI reports, or geopolitical tensions) that could disrupt this technical setup?
