XAUUSD D1 – Liquidity Rotation in Bullish Channel

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Liquidity Rotation Inside a Strong Bullish Channel

Gold remains in a clear long-term uptrend on the daily timeframe, trading inside a well-defined ascending channel. Recent volatility, however, suggests the market is entering a liquidity-driven correction phase rather than a trend reversal.

TECHNICAL STRUCTURE

On D1, price is still respecting the rising channel, with higher highs and higher lows intact.

The rejection from the upper channel highlights profit-taking and sell-side liquidity absorption near premium levels.

Current price action suggests a rotation between upper liquidity (distribution) and lower value zones (accumulation).

KEY LIQUIDITY ZONES TO WATCH

Sell-side liquidity (premium zone):

4480 – 4485
This area represents a strong liquidity cluster near the upper channel and prior expansion highs, where price has shown clear rejection.

Buy-side liquidity (value zones):

4180 – 4185
A psychological level and mid-channel support where buyers may re-enter if price rotates lower.

4000 – 4005
Major long-term liquidity and Fibonacci confluence near the lower channel boundary, acting as a key structural support.

EXPECTED PRICE BEHAVIOUR

Short term: price may continue to fluctuate and rebalance between liquidity pools, with choppy conditions likely.

Medium term: as long as price holds above the lower channel, pullbacks are considered corrective within the broader bullish trend.

A clean rejection from sell liquidity followed by a move into buy liquidity would be a healthy reset for continuation later.

FUNDAMENTAL & GEOPOLITICAL BACKDROP

Geopolitical risk has sharply increased after former President Trump announced a large-scale US operation against Venezuela, including the arrest of President Maduro. This event adds a new layer of uncertainty to global markets and reinforces safe-haven demand.

Historically, rising geopolitical tensions, combined with a softer US dollar environment, tend to support gold prices, especially on higher timeframes.

BIG PICTURE VIEW

Gold’s long-term bullish narrative remains intact

Current moves are driven by liquidity rotation, not weakness

Geopolitical risk could accelerate upside once the corrective phase completes

Patience remains key. Let price move between liquidity zones before committing to the next directional leg.

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