Last week, I mentioned the significance of the $1,680 area for gold (XAUUSD) several times.

I also talked about it in last week’s forecast video.

The $1,680 region has been a key horizontal level for XAUUSD since February of last year.

It’s also the support level of the descending channel that’s been in place for the last eight months.

The EURUSD saw a significant rejection last week from a level I mentioned in the previous weekly forecast.

Monday’s close below the 1.2070 channel support meant that the 1.2070/80 region was likely to serve as resistance.

And that it did.

Wednesday’s retest of 1.2080 resistance led to a 180 pip selloff that eventually tested the 1.1900 handle.

Last weekend, I discussed a potential short opportunity on EURUSD.

I didn’t personally take the entry due to the market’s indecisiveness over the last few weeks.

Those who did short EURUSD have made out extremely well this week.

Notice how the EURUSD broke below the 1.2070 channel support early this week.

On February 5th, I wrote about a potential GBPJPY buying opportunity.

The pair was breaking free from a multi-year level and the uptrend was gaining momentum.

At the time, GBPJPY was trading at 144.73.

Fast forward to today, and the market is 580 pips higher.

XAUUSD (gold) is approaching a must-hold area for bulls.

I mentioned it in yesterday’s video, but $1,680 is a confluence of support.

It’s the intersection of a key horizontal level, descending channel support, and the 61.8% Fibonacci of the 2020 to 2021 range.

If XAUUSD has any chance of turning this multi-month pullback into a bullish continuation, it will happen at $1,680.

The took a hard spill last week after testing 1.2200.

We had been tracking an inverse head and shoulders pattern, that did play out, at least for a couple of days.

However, the way EURUSD ended last week points to further losses.

That’s especially true if the 1.2070 support fails.