XAUUSD Consolidating

XAUUSD started an uptrend from last week with a maximum rise to 1675. In 4H and 1H we can see the higher high and higher lows formation.

In the daily time frame price is still in a downtrend and hasn’t made any higher high yet.

Currently, price has reached to the resistance area and got rejected from it and is consolidating in the yellow consolidation area which is between 1659-1674

I expect XAUUSD ranges in the yellow consolidation zone for a while and then, we should wait for the breakout on this zone.

If price breaks the ranging area and the red resistance level at 1674 to the upside, we can expect a rise to the next resistance level which is a strong level at 1688.

On the other side, if price breaks the consolidation zone and the support level at 1659 to the downside, we expect a drop at least to 1644 which is the next support level ahead.