GOLD/USD Support Retest & Breakdown Setup

GOLD/USD Support Retest & Breakdown Setup 📉🔍

🔹 Overview:
The chart indicates a potential bearish continuation pattern on GOLD/USD as the price is approaching a key support level at 3,335.305. Previous price action shows multiple rejections from the resistance zone (~3,435), followed by lower highs – a sign of weakening bullish momentum.

📊 Technical Analysis:

🔺 Resistance Zone (~3,435)

Multiple rejections (🔴 red arrows) indicate strong supply pressure.

Price has failed to break above this area thrice, forming a clear ceiling.

🔻 Support Zone (~3,335)

Marked as the target for a short setup.

Price is testing this level again after forming a minor consolidation below lower highs.

A clean break below this purple zone may trigger a continuation to the downside, targeting the broader support range below (~3,240).

🟠 Bearish Structure:

Series of lower highs (highlighted with circles).

Breakdown pattern is developing with declining bullish momentum.

📈 Potential Play:

A confirmed breakdown below 3,335 could lead to a drop toward the next major support.

If support holds, short-term bounce is possible but limited by the dominant resistance.

📌 Conclusion:
GOLD/USD is currently in a bearish setup, with the market eyeing a potential breakdown below a critical support zone. If this level fails to hold, we could see accelerated bearish momentum toward the lower support range.

💡 Caution: Wait for a confirmed close below support before entering any short trades.