After the previous strong rally, XAUUSD has entered a corrective phase as price continues to face rejection from the short-term descending trendline. Two reactions around this area suggest that sellers are still defending the higher price zone effectively, while buyers have not yet shown enough strength to produce a convincing breakout.

What stands out is that price is now trading just below the trendline and bullish momentum is gradually fading. If rejection continues, I expect XAUUSD to pull back toward the 4,170–4,180 support area, where buying interest previously appeared.

The short-term bearish scenario would weaken if price breaks decisively above the descending trendline and manages to hold above this area.

This analysis reflects only my personal view. Please make your trading decisions based on your own analysis.

Wishing you successful trading!