View My Previous Blog on XAU/USD
In my previous blog, I gave you the key levels for XAU/USD. I hope you understand what I was explaining. The market didn't follow our points exactly, but I did mention that it would move upward, and it did. When the market reached the level of 2389 and shifted momentum, you could have executed the trade.
However, the market had already moved in the upward direction before the start of the New York session. When the market reached the area of 2401, you should have understood that it would go higher because the moves during the New York session are often accurate, indicating new highs and lows.
The market has remained bull-biased, securing higher lows while establishing the change in momentum to bullish. Click to enlarge I drew red squares around each key number in the image above, showing just how big this move has been. In figure 1, the initial upward momentum is displayed and according to that we predict for a test against resistance seen at 2441 before New York opening. After the market tests this level, we are probably going to see a small retracement towards that zone designated by the downward arrow in Figure 1 before it could take off for its next expansion.
The 2412 was a key resistance level for the SPX, and it has been decisively breached to signal higher from here. Right now XAU/USD is on a retesting stage around The market structure has changed with the completion of a double bottom on figure 4 that is supportive for (at least) price recovery higher into next year as we have been saying. On top of this, figure 3 illustrates how the market respected some FVG located between here at low as 2398 and up to just around today or tomorrow's lows near a tag number of 2401 with visible substantial S/R. As the FVG showed some respect this will likely bring in buyers at these averages and support price taking prices further up.
You should be paying attention to levels of liquidity, order blocks, FVGs and momentum shifts if you want to trade effectively. These factors offer significant perspectives on the future direction of markets and hence indicates to optimal trading positions (entry/exit points). The liquidity order block is primarily located in the 2398-2401 area as depicted in both snapshots. If the market is showing technical respect of these levels it could be an area where institutional money are more likely to show interest in and institutions belives their previous views.
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