XAUUSD GOLD Gold is currently trading at $4,065.328 on the 4-hour timeframe, continuing a significant medium-term correction. After reaching peak highs near the $5,400–$5,600 zone earlier in the year, the asset has established a clear sequence of lower highs and lower lows. The current price action is heavily dictated by a dominant descending trendline that has capped bullish momentum for several months.
Key Technical Observations
Descending Resistance: A steep, unbroken blue trendline highlights the prevailing bearish momentum. Every attempt to rally has been systematically rejected at this dynamic resistance level.
4H Support & Liquidity Zone: There is a critical support block established around the $3,900–$4,000 region, which has recently served as the last line of defense for buyers. Just below this support lies a defined "Liquidity Area." In institutional trading concepts, areas below major swing lows often harbor large clusters of stop-loss orders.
Overhead Resistance: Above the current price action, a structural resistance block rests near the $4,300–$4,400 level. This area must be reclaimed by buyers to shift the macro market structure back to bullish.
Anticipated Price Scenario: The "Liquidity Sweep" Reversal
The path projected by the white arrows on the chart outlines a classic "liquidity sweep" or "spring" setup, which is a common precursor to major trend reversals.
The Flush (Liquidity Grab): The chart anticipates a final, sharp drop below the "4H Support" to sweep the "Liquidity Area." This move is designed to trigger stop-losses and trap breakout traders going short.
The Rejection & Reversal: Following the sweep, a rapid buying response is expected, pushing the price violently back above the $4,000 support level. This V-shaped recovery would indicate that smart money has accumulated positions at a discount.
Trendline & Structure Break: The impulsive move upward is projected to break both the descending blue trendline and pierce through the immediate overhead resistance block near $4,300.
Macro Continuation: After a minor pullback or consolidation at the newly broken resistance (turning it into support), the long-term projection points toward a massive bullish continuation, targeting previous structural highs near $5,400.
Conclusion
The XAU/USD 4H chart indicates that while bears are currently in control, the market is approaching an exhaustion point. Traders should watch closely for a drop into the liquidity zone below $4,000 followed by an immediate, high-volume rejection. A successful liquidity sweep followed by a breakout of the descending trendline would invalidate the bearish structure and signal a strong buying opportunity for the next major leg up.
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welcome to 'Trades With Malik' for VVIP group and signal contact me at my telegram @tradeswithmalik7
Happy trading
Happy trading
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.