XAU/USD potential Longs from 2990 back up to 3,100This week, I’m considering both short- and long-term opportunities on gold. We’ve recently seen a change of character to the downside, and there’s a clean 1-hour supply zone that could trigger a short-term bearish reaction.
That said, there’s also a lot of nearby liquidity resting below, which I expect price to sweep first. If that happens, I’ll be watching the 20-hour demand zone—a strong area that could spark a new bullish rally from the lows.
Confluences for GOLD Buys:
- Price has recently cleared a new all-time high (ATH), indicating continued bullish strength.
- Market structure remains overall bullish, suggesting this move down may be a temporary correction.
- The 20-hour demand zone sits just below key liquidity and looks highly valid.
- Untouched Asia session highs remain above, which price is likely to target.
- The DXY is moving bearish, aligning with a bullish outlook on gold due to their inverse correlation.
Note: If price reacts from the current demand zone (which is also valid), we could see Scenario B play out first—a rally followed by a short move to clear liquidity before heading higher.
Stay patient and trade safe, everyone!
