This chart exemplifies classic ICT methodology and Smart Money Concepts (SMC) in motion. Here's a breakdown of the zones and logic:
Current Market Structure
Key Zones Marked
Expected Play
Smart Money will look to offload longs in the OB/Resistance Zone, potentially triggering a bearish rejection.
Macro Fundamentals (April 2025)
Recent Geopolitical & Economic Drivers:
1. Middle East Tensions: Escalation between Iran and Israel has increased risk-on demand for gold.
2.USD Weakness: Mixed US labor data released April 4 showed slower job growth, reducing Fed’s tightening stance.
3. Gold Reserve Accumulation: Recent reports indicate China & Russia continue increasing gold reserves, supporting medium-term bullish bias on XAU.
Current Market Structure
- Market swept a prior low (liquidity grab) near $3,015, indicating Smart Money accumulation in the breaker block.
- Bullish reaction occurred precisely at the breaker + demand zone, suggesting accumulation by Smart Money.
- Price is currently respecting a short-term higher low, with probable retracement toward premium levels.
Key Zones Marked
- Breaker Block ($3,015–$3,036): Entry area where price reversed after liquidity sweep.
- High Probability Reversal Zone (~$3,061–$3,075): Aligned with 0.382–0.5 Fib + internal liquidity.
- Pullback Zone (~$3,090): 0.618 Fib retracement & previous inefficiency (FVG close).
- FVG (Fair Value Gap) (~$3,100–$3,135): Anticipated magnet for price to rebalance inefficiency.
- Order Block + Rejection Block (~$3,135–$3,167): Strong resistance zone. High chance of rejection.
Expected Play
- Liquidity Sweep Below -> Accumulation in Breaker Block
- Bullish Repricing Toward FVG + OB
- Reaction in Pullback Zone / OB Likely
Smart Money will look to offload longs in the OB/Resistance Zone, potentially triggering a bearish rejection.
Macro Fundamentals (April 2025)
Recent Geopolitical & Economic Drivers:
1. Middle East Tensions: Escalation between Iran and Israel has increased risk-on demand for gold.
2.USD Weakness: Mixed US labor data released April 4 showed slower job growth, reducing Fed’s tightening stance.
3. Gold Reserve Accumulation: Recent reports indicate China & Russia continue increasing gold reserves, supporting medium-term bullish bias on XAU.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.