Hello traders! 📉
Today we’re analyzing XAUUSD (Gold), which appears to be entering a bearish phase after recent price action developments. According to Citi’s latest report, demand for gold is weakening, and they expect lower prices in the coming months. Let’s look at what the technicals are suggesting.
🟠 Gold Technical Analysis by Guriforex | XAUUSD Bearish Outlook After Pattern Breakdown
On H4 chart, gold (XAUUSD) has broken below the ABCD harmonic pattern, a well-known reversal structure. This breakdown suggests that buyers have lost momentum — warning them to be cautious and offering sellers a potential entry point. Price is now testing the 3385 support zone, which is acting as the final line of defense for bulls. A clean break below this zone could confirm further downside.
🔍 XAUUSD Technical Breakdown:
- 📉 Price invalidates the ABCD harmonic pattern, suggesting a bearish continuation.
- 🟫 The key support level at 3385 is being tested.
- 📉 Citi analysts expect weakening demand and downside pressure in the short to medium term.
✅ XAUUSD Trade Setup:
📌 SELL XAUUSD only if 3385 support is clearly broken and confirmed.
🎯 Target Profit (TP): 3320
🛑 Stop Loss (SL): 3406
⚠️ This trade idea is conditional — wait for confirmation before entering!
📢 Final Thoughts:
Gold is showing signs of losing bullish strength after invalidating a major harmonic pattern. If 3385 is breached, sellers may dominate the market, aiming for 3320 in the near term. However, traders must stay cautious — entering only on clear confirmation to avoid false breakouts.
👇 What do you think — Is Gold heading lower?
Smash 👍 if you’re ready to sell, and comment below with your own view!