The XAU/USD pair, indicating the price of Gold against the US Dollar, currently demonstrates a bearish momentum as the price remains below a major descending trend line. This suggests a potential continuation of the bearish trend. In the short-term, there is a possibility of a bearish break below the first support level, leading to a drop towards the second support level.
The first support level at 2009.99, identified as an overlap support and coinciding with the 50% Fibonacci retracement level, holds significance for a potential price bounce-back if the downward trend persists. The second support level at 1977.35, characterized as a multi-swing low support, carries historical significance and could serve as a strong foundation for a price reversal.
On the upside, the first resistance level at 2037.98 is identified as a swing high resistance, expected to pose a substantial barrier hindering price advancements. Additionally, the second resistance level at 2068.40, also a swing high resistance, has historical relevance as a level where price reversals have occurred in the past, potentially obstructing further upward movements.