XAUUSD Short: Testing Supply Before Potential Drop to 4,020$Gold / U.S. DollarFOREXCOM:XAUUSDheniitradingHello traders! Here’s my technical outlook based on the current XAUUSD (3H) chart structure. XAUUSD previously traded inside a well-defined descending channel, where sellers controlled the trend after a major pivot high. Following a bearish breakout below the channel, price dropped sharply and found support near the 4,020 Demand Zone, triggering a recovery phase. Currently, XAUUSD is trading below the 4,200 Supply Zone after a recent breakdown sequence. Recent attempts to sustain momentum above this supply area have failed, showing that sellers remain active around resistance. As long as XAUUSD remains below the 4,200 Supply Zone and the broader descending channel structure, the bearish scenario remains valid. A rejection from current levels could push price down toward the 4,020 Demand Zone (TP1). Manage your risk!