XAUUSD Bearish Setup: Retracement Trap Before the Next Sell-Off?🚨 Gold (XAUUSD) is showing signs of a classic Smart Money retracement trap!
If you're trading gold this week, this is the kind of setup that separates the retail guessers from the Smart Money followers.
📉 The Setup Breakdown (30m Chart):
After a violent sell-off, XAUUSD found temporary support near $3,168, marking a key liquidity zone.
Current price is rebounding, but not randomly — it's heading straight toward the 50% - 61.8% Fibonacci retracement zone, which aligns perfectly with previous imbalance.
📍 Supply Zone (Red Box):
The red area marks a likely Smart Money sell zone — between $3,207 and $3,219.
This zone aligns with the 50% - 61.8% retracement and broken structure area — a classic point for redistribution.
🧠 What Smart Money Might Be Doing:
They're not buying this bounce — they’re setting the trap.
Price is retracing into a premium zone, tempting late buyers, while institutions prepare to re-enter shorts.
📉 Bearish Confluence:
The down-sloping channel supports the current bearish momentum.
Any rejection from the red zone could be the start of another impulsive leg down toward $3,170, then $3,168 and possibly lower.
🎯 Key Target Zones:
TP1: $3,170 — minor liquidity shelf
TP2: $3,168 — Fibonacci 0% level and key support
TP3 (extension): Below $3,160 if structure breaks aggressively
⚠️ Risk Management Strategy:
Entry near $3,207–$3,219
SL just above $3,219 for safety
RR on this play is highly favorable, but only if price respects the supply zone
⚡ Execution Plan:
Wait for bearish signs inside the red zone (engulfing candles, momentum shift)
Avoid early entries — Smart Money often pushes a few pips beyond equilibrium before reversing
Manage trade in segments, partial out at TP1 and trail stop into deeper targets
🧠 Pro Trader Tip:
This is not a breakout play — it’s a liquidity engineering setup.
Smart Money thrives on fake reversals, and this current bounce could be one of them. Watch the supply zone reaction closely.
✅ Comment "GOLD SETUP" if you’re watching this play unfold
✅ Save this analysis to sharpen your Smart Money trading edge
