XAUUSD – Bearish Trend Continues After Channel Breakout

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Gold is currently moving within a clearly defined descending channel, with successive lower highs confirmed at each retest of the dynamic resistance line. Following news of a temporary ceasefire between Iran and Israel, gold's safe-haven appeal weakened, triggering strong selling pressure that drove prices sharply lower, breaking below the key $3,260 support.

A rounded top pattern and a clean breakout beneath the channel indicate that sellers are in control. The next downside target lies around the $3,218 confluence zone, where a temporary bullish reaction may occur. The nearest resistance on a pullback is around $3,349 – aligned with the broken upper channel boundary and a dense FVG zone.

If the price fails to quickly reclaim the broken channel, the bearish trend is likely to persist in the short term. Traders should closely monitor price action near the $3,218 zone for potential entries or reversals.

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