Gold Approaches Resistance – Will It Drop to 3,290?OANDA:XAUUSD is currently approaching a previous key resistance level, an important area that has previously acted as a reversal zone where bullish moves were strongly rejected. This is also where sellers have intervened aggressively in the past, so it is worth watching, especially for anyone considering short trades.
Additionally, this price zone also coincides with the upper boundary of the ascending channel, increasing the likelihood of selling pressure if bullish momentum starts to fade. Such overbought conditions often lead to significant pullbacks, supporting necessary corrections.
If we start to see signs that price is being rejected here such as long wicks, bearish candles, or buyers starting to lose momentum. I think we could see a move down toward the 3,290 level. But if price clearly breaks through this area, that could invalidate the bearish idea and suggest the uptrend may even continue.
This area is quite important and may help us better understand the next direction of price.
As usual, this is a personal view of the market and not financial advice.
