XAUUSD (Gold) Shorts towards 1980.000 and below.
For gold, I have two possible scenarios that could play out this week. As we've seen a huge impulsive move to the upside recently, we are now expecting price to drop in order to fill in the imbalances and take out the liquidity that was left below. Currently, it's in a very good daily supply zone that caused a CHOCH to the downside on (may 23rd.) Hence why I am expecting price to distribute and sell off down towards the levels of 1980 and below.
As of now, we are looking for imminent sells towards the 8hr demand zone as that's a good zone that could respect the bullish trend in order for price to keep going bullish. So from there, I would be looking for a buy opportunity. However, As we have too much liquidity underneath that 8hr demand zone i.e. engineering liquidity, untouched asia lows and swing lows. We won't be surprised if price pushed further down all the way to 1920.000 or even 1880.000. As we will find a lower time frame confirmation for the sell I would personally take out at 1980 to see if price wants to respect it or violate the demand completely.
Scenario (B) is that the daily supply zone that it is currently in will fail and mitigate the extreme (9hr) Supply zone above it in order to then sell off from there towards 1980. To add, there is an untouched Asian high within the current zone so I can see that being taken before price wants to start reversing. Regardless as of now, we are looking for sell opportunities from the current price or the 9hr supply above to target the 1980.000 region, to then ultimately see if price wants to break or respect that POI.
My confluences for XAUUSD shorts are as follows:
- Price has tapped into a daily supply zone that has caused a change of character to the downside.
- Rejection from the POI has started to become visible due to the small consolidation where price has initially entered.
- Lots of liquidity to the downside in the form of trendlines, untouched Asian lows and imbalances.
- Price has been bullish for quite some time and the impulsive move requires some sort of pullback that I am expecting currently.
- Price has also swept lots of liquidity on the higher time frame that was gathered since couple months ago.
- Bottom side of the consolidation left around 1952 needs to be swept as well as its just swept the top side of it.
P.S. We have to be ADAPTIVE in all scenarios as the more angles we can look at something the more prepared we can be when price makes its decisions. Hence why in this detailed analysis we are looking at more than one way of what XAUUSD forecast might look like.
As of now, we are looking for imminent sells towards the 8hr demand zone as that's a good zone that could respect the bullish trend in order for price to keep going bullish. So from there, I would be looking for a buy opportunity. However, As we have too much liquidity underneath that 8hr demand zone i.e. engineering liquidity, untouched asia lows and swing lows. We won't be surprised if price pushed further down all the way to 1920.000 or even 1880.000. As we will find a lower time frame confirmation for the sell I would personally take out at 1980 to see if price wants to respect it or violate the demand completely.
Scenario (B) is that the daily supply zone that it is currently in will fail and mitigate the extreme (9hr) Supply zone above it in order to then sell off from there towards 1980. To add, there is an untouched Asian high within the current zone so I can see that being taken before price wants to start reversing. Regardless as of now, we are looking for sell opportunities from the current price or the 9hr supply above to target the 1980.000 region, to then ultimately see if price wants to break or respect that POI.
My confluences for XAUUSD shorts are as follows:
- Price has tapped into a daily supply zone that has caused a change of character to the downside.
- Rejection from the POI has started to become visible due to the small consolidation where price has initially entered.
- Lots of liquidity to the downside in the form of trendlines, untouched Asian lows and imbalances.
- Price has been bullish for quite some time and the impulsive move requires some sort of pullback that I am expecting currently.
- Price has also swept lots of liquidity on the higher time frame that was gathered since couple months ago.
- Bottom side of the consolidation left around 1952 needs to be swept as well as its just swept the top side of it.
P.S. We have to be ADAPTIVE in all scenarios as the more angles we can look at something the more prepared we can be when price makes its decisions. Hence why in this detailed analysis we are looking at more than one way of what XAUUSD forecast might look like.