XAUUSD Technical Analysis – Educational Insight Key Observations:
🔴 Strong Support Zone (3,278 – 3,299 USD)
This zone has been highlighted as a key institutional level where buyers have consistently stepped in.
It aligns with previous Breaks of Structure (BOS), confirming its historical significance.
📉 Recent Price Action:
Price is retracing from the highs of around 3,439 USD and is approaching the strong support zone again.
A possible liquidity grab near the support is anticipated before a bullish reversal.
🔄 Break of Structure (BOS):
Multiple BOS marked indicate shifts in market direction and the presence of aggressive buying/selling phases.
These BOS events help identify trend continuation or reversal points.
🟢 Bullish Fair Value Gap (FVG):
A bullish FVG is present, indicating imbalance in price movement where institutions may look to fill orders.
Price previously reacted positively to this zone, indicating unfilled demand.
📈 Target Area:
A clearly marked target at 3,440.487 USD, which aligns with Buy-Side Liquidity, suggests a potential liquidity run.
This implies smart money may drive price upwards after collecting liquidity below support.
Volume Profile (VRVP):
The horizontal volume bars show the highest traded volume areas, providing confirmation for key support zones and BOS reactions.
🧠 Educational Insights:
BOS (Break of Structure) is used by institutional traders to spot shifts in trend. It typically signals continuation or reversal when aligned with liquidity concepts.
Liquidity Zones (like buy-side or sell-side liquidity) often serve as magnets for price; smart money aims to trigger orders and trap retail traders.
Fair Value Gaps represent imbalances where price moved too fast; institutions may return to these zones to execute pending orders.
Volume Profile Analysis helps in understanding where the most buying/selling occurred—confirming support and resistance zones.
📌 Strategy Suggestion (For Learning Only):
Entry Idea: Wait for price to tap the strong support (ideally sweep liquidity slightly below).
Confirmation: Look for bullish engulfing or BOS on lower timeframe to confirm reversal.
Target: 3,440 area where buy-side liquidity resides.
Stop Loss: Below the strong support (near 3,270 level) to protect against deeper liquidity grabs.
📢 Disclaimer (Educational Use Only):
This analysis is for educational purposes and not financial advice. Trading involves significant risk; always do your own research or consult a financial advisor.
