XAUUSD is currently trading within a well-defined descending channel, respecting both the upper and lower boundaries while maintaining its overall corrective structure. As long as price remains inside this channel, the broader expectation is for the market to continue moving toward the lower boundary.
A key confluence exists near the bottom of the channel, where a strong bullish demand area aligns with two previous bullish pullback zones. This region has historically attracted buyers and is also marked as a major reversal area, making it a high-interest zone for potential bullish participation.
The current expectation is that Gold may first sweep liquidity by declining into this demand zone before finding support. If buyers defend this level and bullish confirmation appears, the market could initiate a strong pullback toward the upper boundary of the channel, with the next objective being the higher reversal area overhead.
As long as the major demand zone remains intact, the probability favors a bullish reaction after the completion of the bearish move. However, a decisive breakdown below this support would invalidate the bullish outlook and could expose Gold to deeper downside.
Final Bias:
Short-term: Bearish toward the major demand/reversal zone.
Higher Probability Scenario: Bullish pullback from the lower channel support after confirmation, targeting the upper channel and the next reversal area.
A key confluence exists near the bottom of the channel, where a strong bullish demand area aligns with two previous bullish pullback zones. This region has historically attracted buyers and is also marked as a major reversal area, making it a high-interest zone for potential bullish participation.
The current expectation is that Gold may first sweep liquidity by declining into this demand zone before finding support. If buyers defend this level and bullish confirmation appears, the market could initiate a strong pullback toward the upper boundary of the channel, with the next objective being the higher reversal area overhead.
As long as the major demand zone remains intact, the probability favors a bullish reaction after the completion of the bearish move. However, a decisive breakdown below this support would invalidate the bullish outlook and could expose Gold to deeper downside.
Final Bias:
Short-term: Bearish toward the major demand/reversal zone.
Higher Probability Scenario: Bullish pullback from the lower channel support after confirmation, targeting the upper channel and the next reversal area.
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.
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.