XAUUSD Hi,
The Price was in an UPTREND before settling for consolidation, The moving Avarage is sloping downward, which indicates POTENTIAL REVERSAL.
We can only have a BULLISH CASE if the price breaks above the CONSOLIDATION RANGE with strong BULLISH CANDLESTICKS.
If the Candlestick Patterns show LONG RED BODIES it suggests STRONG SELLING PRESSURE , But if they begin forming HIGHER LOWS $ HIGHER HIGHS it will then be indicating BUYING PRESSURE.
Using Fibonacci Retracement Levels , We Identified KEY SUPPORT AND RESISTANCE LEVELS, where price might REVERSE or GAIN STRENGTH. The common Levels 38.2 % , 50 % and 61.8% .
if the price retraces to the 38.2% level and bounces , it suggests BULLISH CONTINUATION
if the price drops to the 61.8% level it's a stronger SUPPORT ZONE , indicating POTENTIAL BUY PRESSURE.
A break below 61.8% may signal FURTHER DOWNSIDE.
The pattern formation like DESCENDING CONTRACTING TRIANGLE, FALLING CHANNEL and FALLING WEDGES indicate SELL ENTRIES.
OVERALL we are still on Consolidation and expecting to hit $3292 and then Experience a MINOR MELTDOWN TO at least $3193 and only then we will decide on where the market is headed to.
Will be back with FURTHER UPDATES.
