Market Overview
Looking at the hourly chart for XAUUSD, the market structure has shifted back to a bearish tone after a temporary bullish rally.
Previously, the asset broke down through multiple BOS (Break of Structure) levels on the left before establishing a local bottom. From there, price moved aggressively upward within a well-defined Upward Channel. However, after a sharp liquidity sweep/fakeout at the top of the channel, price collapsed aggressively back down, breaking the channel structure and shifting momentum back to the downside.
Technical Breakdown
The Catalyst: Price sharply rejected the highs and broke completely out of the Upward Channel, indicating that the buyers have exhausted their momentum.
Current Price Action: Gold has fallen back to a key Resistance zone and is currently mitigating a crucial H1 Order Block (H1-OB) around the 4,507.87 area.
The Entry Zone: The H1-OB serves as our prime supply zone. We are looking for price to respect this block, show exhaustion, and reject lower.
The Target: The ultimate downside target is marked by the major horizontal yellow liquidity level below (previous structural support), matching the strong downward impulsive arrows drawn on the chart.
Trade Strategy
📉 Bias: Bearish (Short Setup)
Entry Zone: Inside the H1-OB (Around 4,507 - 4,510)
Stop Loss (SL): Just above the defined Resistance line (to invalidate the bearish thesis if price breaks higher)
Take Profit (TP): At the yellow TARGET line (Major liquidity pool/Support)
Looking at the hourly chart for XAUUSD, the market structure has shifted back to a bearish tone after a temporary bullish rally.
Previously, the asset broke down through multiple BOS (Break of Structure) levels on the left before establishing a local bottom. From there, price moved aggressively upward within a well-defined Upward Channel. However, after a sharp liquidity sweep/fakeout at the top of the channel, price collapsed aggressively back down, breaking the channel structure and shifting momentum back to the downside.
Technical Breakdown
The Catalyst: Price sharply rejected the highs and broke completely out of the Upward Channel, indicating that the buyers have exhausted their momentum.
Current Price Action: Gold has fallen back to a key Resistance zone and is currently mitigating a crucial H1 Order Block (H1-OB) around the 4,507.87 area.
The Entry Zone: The H1-OB serves as our prime supply zone. We are looking for price to respect this block, show exhaustion, and reject lower.
The Target: The ultimate downside target is marked by the major horizontal yellow liquidity level below (previous structural support), matching the strong downward impulsive arrows drawn on the chart.
Trade Strategy
📉 Bias: Bearish (Short Setup)
Entry Zone: Inside the H1-OB (Around 4,507 - 4,510)
Stop Loss (SL): Just above the defined Resistance line (to invalidate the bearish thesis if price breaks higher)
Take Profit (TP): At the yellow TARGET line (Major liquidity pool/Support)
Trade closed: target reached
XAUUSD hit the full target perfectly and extended 600+ pips in the anticipated direction.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Join our Free Daily Signals Channel – Targeting 500+ Pips!
Join: t.me/TechnicalPipssSignal20
We share high-quality trading setups every day to help you stay ahead in the market.
Telegram: t.me/TechnicalPipssSignal20
Join: t.me/TechnicalPipssSignal20
We share high-quality trading setups every day to help you stay ahead in the market.
Telegram: t.me/TechnicalPipssSignal20
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.