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XUA/USD) Bearish Analysis Read The caption

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SMC trading point update



Technical analysis of XAU/USD (Gold vs USD) on the 1-hour timeframe. Here's a breakdown



Technical Analysis Summary

1. Descending Channel:

The price is moving within a clear descending channel, indicating a bearish market structure.

Recent price action rejected the upper boundary of the channel, strengthening the downtrend bias.


2. Resistance Rejection:

A key resistance level around 3,340–3,345 was retested (marked with a red arrow) and rejected.

Price has already shown early bearish candles post-rejection, suggesting weakness at that level.


3. 200 EMA (Exponential Moving Average):

Price is currently hovering around the 200 EMA, and a clean break below it could accelerate the bearish move.


4. RSI Indicator:

RSI is around 46, below neutral 50, showing bearish momentum is building but not yet oversold.

No divergence is present, supporting the idea of continuation.



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Bearish Playbook

Entry Idea: After the rejection at the resistance zone and confirmation of lower highs.

Target: 3,313 – 3,310 zone (marked as the “key support level” and “target point”).

Risk Management: A stop loss above 3,345 (above the resistance zone) would be a prudent protection level.



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Confluences Supporting the Short Setup:

Rejection at horizontal resistance.

Alignment with the descending trendline/channel.

Price trading near or below the 200 EMA.

RSI slightly bearish.




Caution:

Watch out for any macroeconomic news or high-impact events (highlighted with the economic event icons) that could inject volatility.

A strong break back above the resistance could invalidate this bearish setup.


Mr SMC Trading point

Conclusion:

This setup anticipates a bearish continuation targeting the 3,310 support zone. Ideal for short-term traders looking for downside opportunities, provided price respects the trend and fails to reclaim the resistance.




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