Price recently broke down from a descending wedge.📊 Gold (XAUUSD) – 1H Chart Analysis
Structure Overview:
Price recently broke down from a descending wedge/consolidation pattern after forming lower highs and lower lows — a classic sign of bearish pressure building up.
🔻 Bearish Breakout in Play:
The sharp move down through the wedge's lower boundary suggests strong momentum to the downside. This aligns with the previous rejection from the top of the falling channel.
🔮 Potential Scenarios:
1. Bearish Continuation (Primary Bias):
If price sustains below the wedge support and fails to reclaim the breakout zone, we could see a further decline toward lower support levels (as shown in the downward arrow).
Watch for possible reactions at 3350 → 3345 → 3340 zones.
2. Bullish Fakeout Recovery (Alternative):
If price quickly reclaims the broken trendline and forms a bullish engulfing or breakout structure, it could invalidate the breakdown, signaling a possible reversal and rally back up toward 3380+ (as indicated by the upward projection).
⚠️ Key Levels to Watch:
Support: 3350 / 3345 / 3340
Resistance: 3365 / 3380
Zone of interest: Retest of wedge breakdown area
📌 Insight:
The market has broken below the daily bullish FVG CE level, further supporting the bearish bias — but retests can trap sellers, so remain flexible.
