XAU/USD (Gold) – Educational Chart Breakdown [1H Timeframe]

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We’re currently observing a consolidation phase just below a well-tested resistance zone (~$3,377), while price remains supported by an ascending trendline — a classic setup where structure tightens before a significant move.

Two Potential Outcomes:

Bullish Case
If price closes convincingly above $3,378 with strong volume, we may see a continuation toward the $3,400–$3,410 zone. This would confirm the resistance break and shift market structure bullish on the 1H chart.

Bearish Case
Failure to break above resistance may lead to a reversal and a drop into the $3,345–$3,355 demand zone — especially if price loses the ascending trendline. This would reflect a liquidity sweep and continuation of the larger corrective move.

Patience is key — wait for confirmation before taking action. Consolidation often precedes expansion.

Penafian

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