XAUUSD MARKET ANALYSIS

 Good afternoon traders, it's another week full of great opportunities in the financial markets and I hope you're ready to take advantage of that and have a profitable week. Into the markets today I'm looking at XAUUSD where price dropped from a major H1 & H4 supply zone at 2052.85 & 2030.88 which is the origin of the previous drop to the H1 & H4 demand zone/liquidity at 1980.40 & 1970.72. Price filled the H1 & H4 range from the major H1 & H4 supply zone to the H1 & H4 demand zone and back to the major H1 & H4 supply zone. Price dropped 460 pips to the 1st H1 & H4 low which was a previously broken H1 & H4 supply at 2006.53. Price failed to break the H1 & H4 low and instead retraced to retest supply before a continuation of the drop lower. Price rallied to 2029.56 and formed rejection wicks followed by a slight drop to 2019.00 where price failed to break that minor low. Price rallied back to the high at 2029.00 during London session and failed to break it and instead consolidated below it. I anticipate price to gain more momentum into NY session that will take out the equal H1 highs at 2029 and rally to retest supply at 2030 before the actual drop.

Price eventually took out the equal H1 highs as stated and anticipated earlier and rallied to supply at 2032.00. Took sell positions during NY session via pending sell limit orders at 2031.00 with SL at 2040.40. Setup taken is a rally base drop, a reversal setup and my target is at 1980.40, the H1 & H4 demand zone.