XAUUSD Shorts from 2060.000 down towards 1980.000
Gold bias for this idea is for a bearish move to take place around the 2060 mark where a 5hr supply zone lies. I am anticipating a bit more upward movement in the form of distribution, my plan is to execute sell positions once the price enters my Point of Interest (POI), intending to fill the significant imbalance left by the FOMC news event. Additionally, there are indications of diminishing bullish pressure on the lower time frame, signalling a potential reversal.
Furthermore, considering that the price has reached all-time highs (a major liquidity point), it has accumulated sufficient liquidity to facilitate a downward shift. This is reinforced by the observed change in price character on the higher time frame, providing additional confirmation that selling positions are becoming more viable.
Confluences for XAUUSD Sells are as follows:
- Price has taken ATHs a major liquidity point enough for price to trigger a reversal.
- There's a major POI (5hr supply zone) In which I expect a distribution to take place.
- There's loads of liquidity left to the downside that needs to get taken as well as major imbalances that was left from the previous FOMC event.
- Bullish pressure is now getting exhausted on lower time frames in which I can expect potential sell offs.
- In order for price to keep going in a bullish trend price must retrace and make a correction.
P.S. Keep in mind that despite the current bearish bias, my overall outlook on this pair remains bullish, and I perceive this downward movement as a temporary one. Following this descent, my intention is to explore buying opportunities around the 1980.000 area, where a new 6-hour demand zone has emerged. Additionally, I anticipate a subsequent price rally, surpassing the recent highs, making buying positions a favourable bias in general. I would love to hear you guys opinion and thoughts about gold, so be sure to drop a comment below!
Furthermore, considering that the price has reached all-time highs (a major liquidity point), it has accumulated sufficient liquidity to facilitate a downward shift. This is reinforced by the observed change in price character on the higher time frame, providing additional confirmation that selling positions are becoming more viable.
Confluences for XAUUSD Sells are as follows:
- Price has taken ATHs a major liquidity point enough for price to trigger a reversal.
- There's a major POI (5hr supply zone) In which I expect a distribution to take place.
- There's loads of liquidity left to the downside that needs to get taken as well as major imbalances that was left from the previous FOMC event.
- Bullish pressure is now getting exhausted on lower time frames in which I can expect potential sell offs.
- In order for price to keep going in a bullish trend price must retrace and make a correction.
P.S. Keep in mind that despite the current bearish bias, my overall outlook on this pair remains bullish, and I perceive this downward movement as a temporary one. Following this descent, my intention is to explore buying opportunities around the 1980.000 area, where a new 6-hour demand zone has emerged. Additionally, I anticipate a subsequent price rally, surpassing the recent highs, making buying positions a favourable bias in general. I would love to hear you guys opinion and thoughts about gold, so be sure to drop a comment below!
Comment:
Note that price has now Changed Character to the downside (CHOCH) and has created a new supply zone on the (11hr). This is important as I'm now interested in this new zone as its much closer to current price allowing for us to take a potential sell much sooner.