As we can see GOLD has been in a downtrend for some time now, and now it has reached a critical selling point where it previously sold from
Expecting it to continue in its downward movement until the next demand zone at 1879
As we have clearly observed from this region from previous interaction, there is a fair amount of buying pressure on it. Price came back to test this zone once more and held above it quite convincingly, leading me to deduce that there could be enough orders to drive us into a nice buy move.
Should we cross the zone let us be stopped out early should the zone no...
As we can see gold has been on a downtrend for the longest time, we broke the region that we currently on but price came back into a buying movement.
However price failed to establish itself above the 1920 region, and for that reason I think that the presence of buyers in the GOLD market is weak, expecting sells to the downside
We see from the previous 2 touches on this zone that the buying pressure was no longer as strong as it used to be
The most recent touch is a failed buy attempt, before price shot to the downside overcoming the zone
Expecting price to continue falling
What we see here is a currency pair that is net bearish, but has exhausted and formed a key level on the 4H timeframe, which shows there that the resting liquidity in this region is enough to inject some buying pressure, until we reach the retest of our supply zone at the top, and prepare for a long term sell movement