XAU/USD weekly outlook My analysis revolves around the continuation of the current short-term bearish trend. To capitalise on this move, I’ll be watching for price to mitigate either the 4-hour supply zone or the 3-hour supply zone. If price instead decides to respect a nearby demand zone, I’ll shift focus and wait for a potential reaction from a 1-hour demand zone.
From there, we could see signs of accumulation followed by a bullish reaction, leading price back up into a supply zone before continuing the sell-off in line with the prevailing trend. However, if price breaks below the 1-hour demand, that would further confirm a stronger bearish bias.
Confluences for GOLD sells are as follows:
- Price has broken structure to the downside, confirming the short-term bearish trend.
- Price is approaching both the 4-hour and 3-hour supply zones, which could act as strong sell areas.
- There is a lot of downside liquidity that remains untapped and could be targeted.
- On the higher timeframes, price appears overbought due to the recent corrective move.
P.S. If price fails to respect the nearby supply zones and breaks through them, I’ll then look for a reaction from a more premium supply level. Overall, my long-term bias remains bullish based on the higher timeframes.
