XAUUSD: Supply Zone Approach

Hello everyone! I’m back after a long time! Let’s start with the most popular asset, XAUUSD!

As you see in the 4H time frame, after a sharp drop, price has started a slow upside move with weak candles.

There is a supply zone ahead of the price which is around 2040 and we expect a downside push from this level on price.

There is also a daily resistance level at 2050 which has pushed the price to the downside in the past.

Since the current bullish candles are weaker than the bearish candles in the previous downside move, I expect a drop on XAUUSD towards the green levels at 2020 and 2010 in the upcoming future.

Note: look for any bearish rejection signals around 2040 - 2050 in lower time frame (1H).