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.
Here’s how all of that looks on the chart:
If XAUUSD has any chance of turning this multi-month pullback into a bullish continuation, it will happen at $1,680.
I wouldn’t want to see a daily close below this area.
If that were to occur, we could see gold trend even lower, perhaps toward the $1,600 area.
But as of now, I like the idea of a bounce from the $1,680 region.
As I wrote yesterday, the next key resistance for XAUUSD is $1,760.
You can see how this area supported gold in December and again in February.
A close above that would open the door to the channel top near $1,850.
That said, XAUUSD buyers have to defend $1,680 first.