XAU/USD Breakdown – Key Support Levels Tested After Major Drop!

### **Analysis & Description:**
This 1-hour chart of **Gold (XAU/USD)** from **OANDA** presents a strong **bearish move** following a key **liquidity grab and rejection** from the 2,942–2,950 resistance zone.

#### **Key Observations:**
- **Fair Value Gap (FGV 4H)**: The price initially tapped into the imbalance before facing a strong rejection.
- **Liquidity Sweep**: The sharp move up prior to the decline suggests that smart money may have induced liquidity before the major bearish move.
- **Bearish Break & Retest**: The price has broken through significant **support levels** around 2,892 and 2,878 and is now approaching the next support at **2,834**.
- **Fibonacci & Structure**: The Fibonacci retracement aligns with a deeper correction, with the price possibly targeting **2,820–2,800** if bearish momentum continues.
- **Risk-Reward Setup**: The risk-to-reward ratio in this trade setup suggests a well-executed short position, capturing nearly **3.70% downward movement** (approx. **-108 points**).

### **Potential Scenarios:**
🔴 **Bearish Case:** If the price sustains below 2,844 and fails to reclaim key resistance zones, further downside is likely toward **2,820–2,800**.
🟢 **Bullish Case:** A strong bounce from current levels (2,834) could trigger a short-term retracement before resuming downward momentum.

#### **Final Thought:**
Gold remains in a **strong downtrend**, and traders should watch for price action confirmation around support levels before considering further positions.