XAUUSD market technical outlook

 Daily chart:

The bulls failed to overcome the resistance zone 1756.11-1760.43 that resulted in quite a massive downward work off. This formation is not a direct short setup, but it can well be a sign of the market segue to a new trending downswing. There are big odds for further decline of the rate in direction 1700.00.

H1-chart:

Local corrective bullish swing most likely will get a cut-off at 1737.52-1740.77, where the two latest broken structure’s highs reside. This zone will be of the primary interest for the sellers today. Intraday target is support zone 1721.94-1723.94.

Conclusions:

Main scenario: Upward pullback to 1737.52-1740.77 followed by a decline to 1721.94-1723.94.

Alternative scenario: Decline from current levels in direction 1700.00.

Trading recommendations:

Shorts from 1737.52-1740.77 to 1723.94, 1721.94, 1700.00.