XAUUSD Breakout or Breakdown? Watch These Key Levels

Gold’s six-week rally hit a critical level on Friday, and recent price action suggests caution as we approach FOMC.

In today’s video, I’ll highlight the key levels to watch and share an XAUUSD trading idea you won’t want to miss.

XAUUSD has rallied aggressively since mid-December, breaking through key levels like $2,660 and $2,716.

However, Friday’s high came just shy of the all-time high at $2,790.

As noted in Saturday’s Weekly Forex Forecast, gold remains range-bound despite its six-week rally.

In my view, now is not the time to turn bullish on XAUUSD.

At the same time, there wasn’t a bearish setup to act on—until Monday’s session.

Monday’s close below $2,763 raises doubts about whether gold bulls can maintain the bullish momentum.

Since December, gold has stair-stepped its way to range highs, but Monday’s session failed to hold $2,763 as new support.

Even the intraday charts hint at a potential head and shoulders pattern.

With the Fed’s rate decision and press conference on Wednesday, we can expect increased volatility, which will undoubtedly impact gold.

While XAUUSD is testing resistance at $2,763 today, downside targets like $2,660 won’t be in play unless gold closes below $2,716 on the daily chart.

Until then, there’s still a chance gold could sweep the $2,790 all-time high, especially with FOMC volatility around the corner.

The bottom line is that gold remains range-bound until we see a definitive breakout.