The breakout from this Rising Wedge serves as a crucial clue to monitor for the market's next directional move. If price attempts a brief pullback to retest the broken trendline support—now acting as new dynamic resistance—and continues to encounter strong selling pressure, XAUUSD is highly likely to extend its downward move. The primary downside target is positioned toward the 4,335 liquidity zone. Conversely, if buyers manage to push price back inside the wedge structure and close firmly above it, this bearish setup will be invalidated.
Traders should monitor the retest phase closely, looking for key confirmation signals such as rejection candle patterns or expanding sell volume before executing positions.
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