Gold (XAU/USD) remains under bearish pressure as price is approaching and challenging a key support zone (blue).
The XAU/USD seems to be building an extended bearish wave 3 (green). Recently price has made a bullish retracement but this turned out to be shallow and confirms the potential wave 4 (orange) pattern as expected las week. As long as price stays below the resistance trend line (red), a continuation lower is expected within wave 3 of wave C (purple).
XAU/USD indeed completed the ABC pattern (brown) as expected in last week’s analysis within wave 4 (orange) and made a bearish at the 38.2% Fibonacci retracement level. There is now a bearish channel which is testing the previous bottom and support zone.