GOLD (XAU/USD): a minimalistic multi-timeframe illustration

Taking a look at the Monthly-timeframe graph, we might observe that the price has heavily rejected the major level of resistance that has been highlighted.

Zooming into the Weekly Timeframe, it can be inferred that the price is currently sitting on a previous region of resistance now acting as support. If the key level we are currently sitting on gets penetrated, expect a bloodbath.

The bearish price build-up along with a strong USD give us enough confidence that the ongoing downtrend might continue. In case things play out in accordance with our theory and game-plan, we will be closely monitoring the price action for entering short positions and aiming for the price region market on the graphic.