#XAUUSD Technical Analysis Gold

The daily candlestick closed as a doji, which appears with a small real body and a longer upper tail than the lower tail, making it suitable to be categorized as an inverted hammer candle pattern. This indicates that a rebound opportunity is likely to begin soon after three consecutive days of decline last week. Additionally, the higher low compared to the previous day (3222 vs 3202) suggests that the decline can currently be considered finished.

In theory, an increase needs to validate the breakout of resistance that has formed over the last two consecutive days. This means that 3269.21 (high on Friday) and 3290 (high on Thursday) are the targets for the rise that must be achieved and broken through in order to open up a stronger upward path. Conversely, a decline must break through 3202 to make it depreciate again.

On the H4 chart, the Fibonacci Retracement (FR) drawn from the bottom 2969 (FR 100%) to the peak 3500 (FR 0%) shows that the FR 61.8% area is still holding, as the decline over the last two consecutive days on Thursday and Friday was held between FR 61.8% 3172 - FR 50% 3235 (the recorded lows were 3202 and 3222). In theory, this indicates that the decline is merely a downward correction or profit-taking. There is still no indication of an actual bearish reversal as there has been no breakout below FR 61.8% 3172.