XAUUSD Critical Reversal Zone | XAUUSD Rejection or Breakout?XAUUSD Critical Reversal Zone | XAUUSD Rejection or Breakout?
Key Observations:
Resistance Zone (Strong Supply Area):
Price has shown multiple rejections around 3400–3440, confirming this region as a strong resistance.
A prior liquidity sweep ($$$) was observed above this zone, trapping buyers and triggering a sell-off.
Support Zone (Demand Area):
A solid base exists around 3260–3280, highlighted as strong support.
Price previously formed a higher low in this area, signaling that buyers are still defending.
Market Structure:
We observed a BOS (Break of Structure) earlier, followed by a fair value gap (FVG), which price later mitigated.
The current structure remains range-bound, with lower highs forming against a defended support.
Liquidity has been swept both above resistance and around key intraday lows.
Current Setup:
Price is trading within the entry zone (3360–3380).
A short trade setup is marked with a stop loss above 3380–3400 and a target around 3320–3300.
This reflects a risk-to-reward short opportunity favoring sellers if rejection holds.
📊 Trading Plan:
Short Bias:
Entry Zone: 3360–3380
Stop Loss: Above 3400
Target 1: 3320
Target 2: 3280 (major support)
Invalidation:
A clean breakout and close above 3400–3420 would invalidate the bearish setup, opening the way for retesting 3440 resistance.
