XAUUSD: Critical Resistance

XAUUSD, H4

On the H4, after a prolonged sideways move, XAUUSD reached the 61.8 Fibonacci resistance area in a short-term bullish trend. Despite the short-term rise, the %R indicates overbought, so it is crucial to consider two possible scenarios ahead of the US CPI.

• If Gold overcomes the 2388 resistance and rises above the nearest fractal, the target for 2315;

• However, in case of a bounce and a trendline breakdown, XAUUSD will fall to 2350, corresponding to 38.2 Fibonacci;