XAUUSD is currently around 3241.10, having recently pulled back after testing major resistance at 3332.70. While the broader trend remains bullish, the latest weekly candle shows a bearish rejection at the upper band, suggesting a short-term correction may be underway.

The chart shows a strong multi-week rally culminating in a test of the upper Bollinger Band and resistance zone at 3332.70, where price was rejected. The current candle has a long upper wick, indicating selling pressure. The price is still comfortably above the 20-week moving average, which supports the bullish long-term trend, but caution is warranted in the near term.

The MFI (Money Flow Index) is at 85.51, indicating overbought conditions. This supports the case for a short-term pullback, especially as momentum traders begin taking profits. Despite the bearish weekly candle, volume remains consistent, suggesting that bulls may not yet be fully retreating.

Market Observation & Strategy Advice:
1. Resistance Level: 3332.70 – Key resistance tested last week and rejected. Bulls need a clear breakout above this level for trend continuation.
2. Current Price: 3241.10 – Price is holding in recent highs but under immediate pressure after resistance rejection.
3. Support Level: 2981.99 – The next major support lies near the mid-Bollinger Band and prior breakout level, offering potential demand if correction deepens.
4. Momentum Observation: MFI is deeply overbought (85+), signaling exhaustion. Bollinger Bands widening, but price pulling back from upper band could signal volatility cooling. Trend remains bullish, but pullback is likely in the short term.
5. Strategy Advice:

1. Cautious Bullish Bias: Remain bullish in the medium term, but expect near-term retracement unless 3332.70 is broken decisively.
2. Sell on Weakness: Watch for further bearish candles to confirm correction toward the 3100–3000 zone.
3. Buy on Dip Strategy: Look for long entries in the 2981–3050 support zone if price stabilizes with reversal signs.
4. Momentum Confirmation: Avoid new longs until MFI cools below 80 and price finds support near dynamic moving average.

Market Performance:
Precious Metals  Last Price % Change
XPTUSD                         961.54           -0.23%
XAGUSD                        32.0385        +0.10%

Today’s Key Economic Calendar:
RU: S&P Global Manufacturing PMI
TR: Inflation Rate MoM & YoY
US: ISM Services PMI