AI on Gold Consolidating below major high before deeper pullback
XAUUSD
Consolidating below major high to absorb buy liquidity before deeper pullback.
Interpreting Liquidity Dynamics in Gold's Advance to 2052 Resistance:
Today's daily high of 2052.06 on November 29th reached the major buy-side liquidity zone of the May 4th, 2023 daily high of 2067.
* Reaching this historical level has likely triggered profit-taking by short-term traders, creating short-term supply.
* In view of the large volume imbalance created by the advance since the mid-November breakout of 2028 resistance, I expect a consolidation range to form below 2052.06.
* Specifically, I anticipate prices will chop sideways within the 2042-2050 range in the near-term as buy-side liquidity is absorbed back into the market.
* This consolidation would counterbalance the outsized gains seen previously without fully retracing the move.
* Once buy liquidity is saturated, prices are then likely to pull back more meaningfully, possibly retracing 30-50% of the entire impulse from 2028 to fill the volume void.
Trade active:
Here is an update AI powered analysis including recent data on a lower M5 timeframe:
Focus on near-term opportunities, here is an updated intraday Gold USD analysis and forecast:
- Recent price action has been consolidating between 2038-2050 on the M5 timeframe to absorb extended buy-side liquidity from the break above 2038.
- Prices are currently approaching the 2042 M5 pivot high, potentially setting up a buy-side liquidity sweep if breached short-term.
- A brief push above 2042 could trap late long entries, adding short selling pressure on a pullback.
- Immediate support lies at 2038 - a break below this level could see prices range lower in the near future.
- Traders may look for an opportunity to enter longs on a dip close to 2038, targeting a re-test of 2042 resistance on an intraday bounce.
- Alternatively, taking short positions on a break above 2042 with tightened stops could also capitalize on an impending buy-side liquidity sweep back down within the range.
- The primary near-term focus is on opportunities within the 2038-2042 M5 price level range based on available liquidity dynamics.
Focus on near-term opportunities, here is an updated intraday Gold USD analysis and forecast:
- Recent price action has been consolidating between 2038-2050 on the M5 timeframe to absorb extended buy-side liquidity from the break above 2038.
- Prices are currently approaching the 2042 M5 pivot high, potentially setting up a buy-side liquidity sweep if breached short-term.
- A brief push above 2042 could trap late long entries, adding short selling pressure on a pullback.
- Immediate support lies at 2038 - a break below this level could see prices range lower in the near future.
- Traders may look for an opportunity to enter longs on a dip close to 2038, targeting a re-test of 2042 resistance on an intraday bounce.
- Alternatively, taking short positions on a break above 2042 with tightened stops could also capitalize on an impending buy-side liquidity sweep back down within the range.
- The primary near-term focus is on opportunities within the 2038-2042 M5 price level range based on available liquidity dynamics.
Trade closed: target reached:
Short Target reached below 2042. Looking for new opportunities.
Here the latest AI powered short term analysis on Gold:
* Prices approached the 2049 resistance level and pulled back sharply within the hour.
* This confirmed the outlook for a buy-side liquidity sweep and range consolidation below 2049 highs.
* Support has formed near 2041 initially, with lower levels at 2039.
* Between 2041-2043, traders could look for opportunities to enter longs on signs of upside momentum resuming within the range.
* Alternatively, shorts may look to initiate positions near 2046 resistance, targeting a retest of lower pivot supports on potential further selling.
Unless a strong break above 2049 or below 2039 occurs, sideways choppy conditions are likely to persist absorbing extended buy-side liquidity.
Here the latest AI powered short term analysis on Gold:
* Prices approached the 2049 resistance level and pulled back sharply within the hour.
* This confirmed the outlook for a buy-side liquidity sweep and range consolidation below 2049 highs.
* Support has formed near 2041 initially, with lower levels at 2039.
* Between 2041-2043, traders could look for opportunities to enter longs on signs of upside momentum resuming within the range.
* Alternatively, shorts may look to initiate positions near 2046 resistance, targeting a retest of lower pivot supports on potential further selling.
Unless a strong break above 2049 or below 2039 occurs, sideways choppy conditions are likely to persist absorbing extended buy-side liquidity.
