XAUUSD MARKET ANALYSIS

 Good morning traders and welcome to another week full of opportunities in the markets and it is our responsibility as traders to take advantage of them. This week started slow with major bank holidays on Monday but markets started moving swiftly on Tuesday and today. Into the charts today I'm looking at XAUUSD where price dropped into a major H4 & daily demand zone at 1954.52 & 1938.22 which is the origin of the previous rally to the major H4 & daily supply zone at 2012.21 & 2003.16. Price filled the major H4 & daily range from the major H4 & daily demand zone to the H4 & daily supply zone and back to the H4 & daily demand zone. Price dropped into demand and formed strong rejection wicks with candle closes inside demand followed by a rally to 1954.52 after which price dropped back into demand. Price consolidated inside demand followed  by a drop, faking a break of demand and forming a lower low at 1932.00 with candle close below demand but on H4 price formed a strong rejection wick with candle close inside demand followed by a strong rally out of demand. Took buy positions during NY session at 1954.78 with SL at 1948.45. Setup taken is a drop base rally, a reversal setup.

Price rallied 150 pips to 1960.15 confirming the bullish sentiment as price formed solid candle closes above demand. Price retraced to retest demand before a continuation of the rally higher. Took buy re-entry positions during NY session at 1954.76 with SL at 1948.45. Price rallied 70 pips in 2 large H1 bullish candles to 1962.00 confirming the bullish sentiment. Price formed a weak H1 bearish candle that was engulfed by a strong H1 bullish candle that rallied to 1959.80 showing a potential rally. Price gained more momentum into NY session rallying 95 pips to the H1 high at 1964 and showing a potential to break the high and rally higher. Price rallied strongly taking out the H1 & H4 high at 1964.50 during NY session and forming a higher high at 1970.50 confirming a shift in market structure to bullish. Price then spiked to 1975, formed strong rejection wicks and failed to break above 1975 and started dropping hence closing out my positions in 140 pips profit.