XAUUSD has shown signs of completing its bearish five-wave decline after sweeping liquidity below the recent lows and producing a strong bullish reaction. The sharp rejection from the low suggests that sellers may be losing momentum, while buyers begin to step into the market.
From an Elliott Wave perspective, the recent low is a potential Wave 5 completion point, increasing the probability of a corrective recovery. The current bullish displacement indicates that the market may be transitioning from a bearish impulse into a retracement phase.
The preferred buy scenario is to wait for a pullback into the 4,088-4,111 buy zone, where liquidity and market structure align. A retracement into this area would allow the market to rebalance before potentially continuing higher. As long as buyers defend this zone, the recent liquidity sweep is likely to remain the short-term low.
While the higher timeframe favors a corrective recovery, traders on lower timeframes may still find short-term sell opportunities. Any rally into nearby liquidity pools, premium areas, or intraday resistance levels could attract temporary selling pressure before the broader retracement resumes. These sell setups should be viewed as short-term countertrend trades within a larger corrective bullish phase.
Overall, the main focus remains on the 4,088-4,111 buy zone. If buyers continue to defend this area, the recent liquidity sweep could mark the completion of Wave 5 and support a broader move toward higher liquidity targets, while lower timeframes may offer tactical sell opportunities during corrective rallies.
From an Elliott Wave perspective, the recent low is a potential Wave 5 completion point, increasing the probability of a corrective recovery. The current bullish displacement indicates that the market may be transitioning from a bearish impulse into a retracement phase.
The preferred buy scenario is to wait for a pullback into the 4,088-4,111 buy zone, where liquidity and market structure align. A retracement into this area would allow the market to rebalance before potentially continuing higher. As long as buyers defend this zone, the recent liquidity sweep is likely to remain the short-term low.
While the higher timeframe favors a corrective recovery, traders on lower timeframes may still find short-term sell opportunities. Any rally into nearby liquidity pools, premium areas, or intraday resistance levels could attract temporary selling pressure before the broader retracement resumes. These sell setups should be viewed as short-term countertrend trades within a larger corrective bullish phase.
Overall, the main focus remains on the 4,088-4,111 buy zone. If buyers continue to defend this area, the recent liquidity sweep could mark the completion of Wave 5 and support a broader move toward higher liquidity targets, while lower timeframes may offer tactical sell opportunities during corrective rallies.
Note
Join Our Telegram Channel!Get free access to premium content and receive daily market analysis, trade setups, and key market updates. Stay informed and never miss potential trading opportunities.
Join now: https:/t.me/wavenacci
Related publications
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.
Related publications
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.