XAU/USD Bearish Retest in Play – More Downside Expected?

### **Title: GOLD | Bearish Retest at Key Resistance – More Downside Ahead?**

### **Analysis & Description:**
This **1-hour chart of XAU/USD (Gold vs. U.S. Dollar)** presents a clear **bearish structure**, with price currently testing a key **support-turned-resistance zone**. The downward trajectory suggests a **potential continuation to the downside** after a minor pullback.

#### **Key Observations:**
1. **Break and Retest Pattern:**
- Price has **broken below** a critical support level and is now **retesting it as resistance** (marked by horizontal lines).
- This classic **bearish retest** setup suggests that sellers may step in to push prices lower.

2. **Two Possible Scenarios:**
- **Scenario 1 (Primary Bearish Case):**
- If price rejects this resistance, we could see **a strong continuation downward**, targeting **$2,820 – $2,780 levels**.
- This aligns with the **trend structure of lower highs and lower lows**.
- **Scenario 2 (Less Likely Bullish Case):**
- If bulls manage to reclaim and break above **$2,860**, we may see a short-term reversal, with the next resistance near **$2,880 – $2,900**.

3. **Trading Strategy:**
- **Short Setup:**
- Look for rejection signals at resistance (**$2,850 – $2,860**), such as bearish engulfing candles or wicks.
- Enter short positions with **stop-loss above $2,865**.
- Target price zones around **$2,820 – $2,780** for profit-taking.
- **Alternative Bullish Setup:**
- A confirmed breakout above **$2,860** could open the way for a short-term rally.

### **Conclusion:**
Gold remains **bearish**, and this current pullback into resistance could provide a **selling opportunity** if rejection confirms. However, traders should monitor key **economic news events** that could impact gold’s movement.

📉 **Do you think gold will continue dropping, or will bulls take control? Let me know in the comments!** 🚀