XAU/USD Bearish Pattern Analysis

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XAU/USD Bearish Pattern Analysis 📉

The chart presents a potential bearish continuation setup in the XAU/USD pair, highlighted by technical structures and key price levels:

📊 Technical Breakdown:
🔸 Bearish Rejection from Resistance

Price rejected strongly from the 3,440.000 resistance zone, marked with a red arrow.

This area has acted as a historical supply zone, triggering repeated reversals.

🔸 Descending Channel Formation 📉

A clear bearish flag/channel structure is visible post-rejection.

Price action broke down from the channel, signaling potential trend continuation.

🔸 Target Level 🎯

The expected target is around 3,304.374, aligning with previous support zones and structure lows.

This level coincides with a measured move from the channel breakdown.

🔸 Higher Lows Pattern Before Reversal ⭕

Prior to the current decline, the market formed a series of higher lows, highlighted with orange circles — suggesting a buildup before reversal.

🧭 Key Levels to Watch:
Resistance: 3,440.000 – 3,420.000 🔼

Current Price: 3,368.750

Short-Term Target: 3,304.374 🎯

Major Support: 3,140.000 – 3,160.000 🛡️

📌 Outlook:
The rejection from resistance coupled with the descending channel breakdown indicates bearish momentum. If the market maintains below the recent high, further downside towards 3,304 is expected. Break below this may expose deeper support zones.

📉 Bias: Bearish
⏳ Short-term Action: Watch for breakdown confirmation and momentum continuation.

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