Gold rebounded sharply after sweeping liquidity below recent lows, triggering a strong short-covering rally as institutional traders reposition for the start of Q3. Meanwhile, the USD has paused its recent strength ahead of this week's key events, including ISM Manufacturing PMI and Non-Farm Payrolls (NFP).
Technically, Gold has completed a bullish liquidity sweep and is now attempting to reclaim the 4,040 resistance zone. A successful breakout could open the way toward the next supply area around 4,110, while failure at resistance may signal another bearish continuation.
IF–THEN Scenario
If price breaks and holds above 4,040, bullish momentum could extend toward 4,110.
If price is rejected at 4,040, sellers may regain control and push Gold back toward recent lows.
Although short-term momentum has turned bullish, the overall direction will likely depend on the upcoming ISM PMI and NFP, which are expected to drive significant volatility.
💬 Is this the start of a broader bullish reversal, or just a pre-NFP liquidity trap before another sell-off? Share your outlook below!
Technically, Gold has completed a bullish liquidity sweep and is now attempting to reclaim the 4,040 resistance zone. A successful breakout could open the way toward the next supply area around 4,110, while failure at resistance may signal another bearish continuation.
IF–THEN Scenario
If price breaks and holds above 4,040, bullish momentum could extend toward 4,110.
If price is rejected at 4,040, sellers may regain control and push Gold back toward recent lows.
Although short-term momentum has turned bullish, the overall direction will likely depend on the upcoming ISM PMI and NFP, which are expected to drive significant volatility.
💬 Is this the start of a broader bullish reversal, or just a pre-NFP liquidity trap before another sell-off? Share your outlook below!
Trade active
Gold is running ahead of the NFP and PMI releases; the next zone to watch is 4063. Good luck.
Note
+1596 pips - after lower-than-expected NFP and PMI data were released, supporting a rise in gold prices, reaching the 4117 zone. Note the crucial unemployment rate data tonight, which will influence the Fed's interest rate decision.
Trade closed: target reached
+2364pip
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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.