Gold (XAU/USD) - Daily Retracement into Fair Value Gap (FVG)Prior Bullish Move & Sharp Reversal: The chart shows a strong rally throughout late September and early October, followed by a dramatic and impulsive bearish reversal starting around October 24th.
Fair Value Gap (FVG): A large Fair Value Gap (FVG) is clearly defined by the gray shaded box. This gap represents an area of price inefficiency created during the aggressive drop.
The price is currently trading within the lower boundary of this FVG (the current price is around $3,983.70).
CRT-L (Consequent Retracement Low): The upper line of the FVG (around $4,070) is the price level that marked the top of the range.
CRT-H (Consequent Retracement High): The lower line (around $3,935) appears to mark the 50% midpoint of the large down candle that created the FVG, or possibly a key level within the gap.
Proposed Price Action:
The current price action suggests an immediate continuation of the drop (indicated by the large green arrow) towards the CRT-H level ($3,935).
The curved black arrow suggests an alternative or subsequent scenario: the price might retest the upper part of the FVG (near $4,000) before making its eventual move.
Interpretation & Trading Bias
The overall bias is bearish due to the magnitude and speed of the recent drop.
The immediate focus of the analysis seems to be on a potential move lower to fill the remaining portion of the FVG, specifically targeting the CRT-H level. The FVG itself acts as a large zone of resistance and price mitigation. The daily timeframe suggests this drop is part of a major structural shift.
