XAUUSD: Setup Signals a Potential Continuation Toward 3,550GoldOANDA:XAUUSDSmith_TradingFXGold is currently moving within a short-term bearish structure following a sharp rejection at a key confluence resistance zone. The ongoing pullback has taken price back to the origin of a previous strong rally, aligning with a high-liquidity area on the Volume Profile. What stands out, however, is the absence of any clear reversal signal so far. Selling pressure continues to dominate after each weak rebound, indicating the market may not yet be ready for a meaningful bullish move. That said, the presence of a prior swing low combined with dense volume makes this zone a strategic observation area. The most prudent scenario at this point is to wait for a confirmed reaction at support—preferably in the form of reversal patterns such as a Bullish Engulfing, Fakey, or Pin Bar backed by volume confirmation. Only then will a short-term long setup offer a favourable risk-reward opportunity. If price bounces, the first target would be around 3,350 USD—a previous resistance level and a likely zone for profit-taking. On the other hand, a decisive break below 3,280 USD would invalidate the recovery scenario and open the door to a deeper continuation of the downtrend. In summary: This is a key watch zone—not the time to guess bottoms. Wait for confirmation, act with clarity, and always pair your setups with disciplined risk management.