The current XAUUSD structure hints at the development of a major downtrend formed inside the large green channel and the second smaller yellow channel. After the last rebound from the lower green wall, which occurred in mid-May, the price began to rise towards the upper green line.
We see that the bulls could not break through the resistance line of the green and yellow channels, so the bulls had a chance to take over the market. At the moment, the bulls are near the upper green wall. If the level of 1827.24 is broken, the bulls will open the way to the upper yellow line and the resistance level of 1854.65.
Alternatively, a downward movement is assumed in the direction of the lower yellow line and the support level of 1742.34. If the bears have enough strength to break through this level, then a path will open for them to the lower green wall and the support level of 1652.76.
An approximate scheme of possible future movement is shown on the chart.
When confirming the upward movement of the price, we can consider opening deals for purchases. If a bearish trend is confirmed, then we can make money on sales.
