Confluence zone
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Gold (XAU/USD) Price Forecast: Rally Extends to Fresh Highs as Buyers Maintain Control
FX Empire· 2025-12-26 21:40
Group 1 - The market has reached new record highs, but there is a slowdown in momentum indicated by three narrow range days at the top of the trend [1] - A breakout above the 127.2% extension target at $4,516 has occurred, with the next potential upside target at $4,578, and a further target at $4,687 based on the October bearish correction [1] - The price range of $4,664 to $4,713 is significant as it includes long-term indicators and acts as a confluence zone that may attract price movement [2] Group 2 - The recent breakout above the rising trend channel indicates a potential for new highs, with a sustained advance suggesting a possible blow-off phase where momentum could spike [2] - Pullbacks are highlighted as key decision zones for investors, with the recent breakout level at $4,381 serving as a significant potential entry point [3] - The 10-day average also aligns with the breakout level at $4,381, reinforcing its importance as a decision zone [3]