Gold USD Eyeing a BOS Ahead of Strong Bearish Continuation
XAUUSD Gold (USD) appears to be preparing for a continuation of its bearish trend, as it seeks to gather sufficient liquidity to trigger the next leg of its zigzag decline.
In a previous accurate analysis (see the link below), I discussed the mechanics of this zigzag pattern in relation to Gold USD.
It seems that Gold USD is still working to attract more liquidity before making its next move. On Thursday, price action fell short of breaking the 2663 level, but it found strong support around 2655, forming an equal low at today’s market open.
I expect a new upward swing, though it likely won’t lead to a major trend reversal. Instead, this movement could gain enough momentum to reach the 2600-2605 range. For this scenario to unfold, a daily high just below 2673 could be key.
Key Points to Watch:
Watch the 2663 level closely for a break. If price breaks above it, there could be a short-term bullish move.
The 2655 support needs to hold for the upward swing to occur as expected. If it breaks, we might see a faster continuation to the downside without the expected upward swing.
If price fails to gain momentum toward 2673, the bearish scenario could materialize faster than anticipated.
The retracement levels are displayed in this chart thanks to the
Zigzag Orderblock Retracement indicator:
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I haven't fully explained the trading setup I'm using to trade inducement levels. My strategy is similar to Beat the Market Makers, and while I'm currently positioned on the long side, my goal is to shift to short. Market makers are inducing FOMO reactions with sharp pullbacks and spikes, using volatile price action to obscure their targets. As a result, I've built a cash buffer from a long position at 2655 to help cushion my likely early short entries.
I am banking in my healthy profit here at 2666 as it's probably the first BuyStop price level
Note
Based on the explanation about inducement levels, 2672 becomes a speculative reversal price by default.
The area of interest for a reversal begins just above, near the top replacement level around 2669.
We're almost there:
Trade closed manually
The price weakness isn't matching a dump but a Pump as market participants are apparently forecasting that the Non-Farm Payroll (NFP) report will underperform relative to expectations.
As a result gold prices could see a significant rise.
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