XAUUSD Loses Short-Term Support – Deeper Decline May Follow

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At the current moment, gold (XAUUSD) has made a significant breakout, surpassing the key resistance zone at 3,326 USD and is now trading around 3,328.94 USD. This breakout confirms that the short-term bullish trend remains strong.
snapshot

1. Short-Term Trend: Bullish Momentum Expands
After holding the key support zone around 3,311 – 3,315 USD (aligned with the 0.618 Fibonacci retracement), XAUUSD bounced back and broke above the previous high at 3,326 USD. The current uptrend is confirmed by higher lows and a clear breakout candle from the recent consolidation.
2. Updated Support and Resistance Zones:
Immediate Support: 3,318 – 3,320 USD, near the rising yellow trendline and breakout retest zone.
Next Resistance Target: No clear barrier on the 15-min chart, but psychological levels and Fibonacci extensions suggest 3,332 – 3,335 USD could act as the next upside targets.
3. Price Action Highlights:
The breakout candle closed strongly above the 3.618 Fibonacci extension level (3,326.26 USD), showing solid buying pressure.
A bullish signal ("B") from LuxAlgo was triggered near the minor pullback at 3,318 USD, adding further confirmation.
4. Key Technical Signals:
Price has broken out of the purple rectangle consolidation zone, expanding its trading range.
The 0.618 Fibonacci level at 3,311.78 USD continues to act as firm support.
The ascending yellow trendline remains intact, providing dynamic support to the bullish trend.
5. Suggested Trading Strategy:
Buy on Pullback: Consider long positions around 3,318 – 3,320 USD if price retests this zone with bullish confirmation.
Breakout Continuation Buy: A firm close above 3,330 USD with high volume could signal a move toward 3,335 – 3,340 USD.

If price falls below 3,315 USD and closes weakly, the bullish momentum may begin to fade.

XAUUSD is in an extended bullish phase after breaching the 3,326 USD resistance. As long as price holds above the 3,318 – 3,320 USD zone, there is room for the uptrend to continue.
Do you think gold will break above 3,330 USD? Drop your thoughts in the comments and let’s discuss trading strategies together!


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