Gold is showing signs of a pullback after executing a liquidity grab at the previous highs. Hereās a technical outlook based on Smart Money Concepts (SMC):
š 1. Market Structure & Liquidity Overview
Market Structure:
Following a bullish BOS (Break of Structure), buyers failed to sustain momentum. The presence of long upper wicks around the 4.83x area suggests that selling pressure is stepping in.
Liquidity:
The 4.831 ā 4.814 zone is acting as a potential trap for early buyers. Price is now gravitating back toward equilibrium (EQ), indicating a rebalancing phase.
š 2. Trading Plan
At the moment, price is trading in the mid-range (No Manās Land), which carries higher risk. The focus should be on value areas, particularly the Discount Zone:
Point of Interest (POI): Fair Value Gap (FVG) around 4.78x and the Discount Zone near 4.760 ā 4.740.
Primary Scenario: Wait for price to fill the FVG and tap into the Discount Zone. Look for a CHoCH (Change of Character) as confirmation to enter BUY positions targeting the 4.81x region.
Alternative Scenario: If price shows strong bullish continuation from the current level, wait for a confirmed breakout above 4.831 before considering continuation trades.
š” Fundamental Perspective:
The market is currently influenced by USāIran geopolitical tensions, creating uncertainty and volatility in the USD. Meanwhile, expectations of potential Fed rate cuts continue to provide longer-term support for gold.
ā ļø Note: Avoid FOMO at equilibrium levels. Patience is keyāwait for price to reach the Discount Zone to achieve a more favorable risk-to-reward (R:R) setup.
Whatās your view on this gold correction? Drop your thoughts in the comments below! š
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