Happy Friday, dear traders! Today we come with a short-term technical analysis of XAUUSD. Let’s dive into the analysis and check the market situation.
XAUUSD (Gold) Facing Selling Pressure – Bearish Trend to Continue?
XAUUSD (Gold) continues to slide lower as the market remains under bearish pressure, respecting the descending trendline. With an order block formation near 2865, will we see another drop towards 2849, or can buyers step in to reverse the trend? Let’s analyze!
🌍 Global Market Sentiment & Key Fundamentals
🟢 XAUUSD Demand & Safe Haven Status
- Gold is often a safe-haven asset, rising during global uncertainty. However, US economic resilience and a stronger dollar are weighing on gold prices.
- Central bank gold buying remains supportive, but short-term technical factors favor sellers.
💰 US Dollar Strength
- The US Dollar Index (DXY) remains firm, limiting gold’s upside potential.
- If US economic data remains strong, further downside pressure on gold is likely.
📉 Federal Reserve Policy Impact
- Hawkish Fed comments suggest rate cuts may be delayed, reducing gold’s appeal.
- Higher US bond yields continue to challenge gold bulls.
📊 XAUUSD Technical Analysis – Key Levels to Watch
🔻 Bearish Trend Remains Intact
- Gold is trading below a downward trendline, showing continued bearish sentiment.
- A rejection from the order block suggests sellers are still in control.
📌 Trade Setup
✅ Sell Entry: 2865
🎯 Target Profit (TP1): 2849
🛑 Stop Loss (SL): 2874
Why This Trade?
- Order Block Rejection – Selling pressure is evident at the entry point.
- Bearish Momentum – Lower highs and lower lows confirm a downtrend.
- Trendline Resistance – Price remains below key resistance levels.
📢 Trading Strategy & Risk Management
⚠️ Risk Factors to Watch:
- A break above 2874 could invalidate the setup, signaling a potential reversal.
- Global risk sentiment shifts could affect gold demand unexpectedly.
🔽 Sell Setup Confirmation:
- If price respects 2865 resistance, gold could drop towards 2849 and beyond.
- A clean break below 2849 would open further downside potential.
🚀 Do you think Gold will drop further? Comment below and smash ❤️ if you’re bearish on XAUUSD!