XAUUSD MARKET ANALYSIS

Good evening traders, its another wonderful Thursday NY session presenting some good potential profitable opportunities in the markets and I hope you're all ready. Into the markets today I'm looking into XAUUSD where price dropped inside the major H4 & daily demand zone at 1954.80 & 1939.34 filling the 1st H1 range from 1939.34 to yesterday's H1 high at 1970.00 and back into demand at 1939.34. Price formed candle closes inside demand followed by a rally in 3 H1 bullish candles to 1946.16 showing a potential bullish reversal as price didn't break demand to invalidate the possibility of a bullish reversal. Price dropped deeper into demand and formed a strong rejection wick to the downside giving an opportunity to retake the buys. Took buy positions during London session at 1945.08 with SL at 1940.00. Setup taken is a drop base rally, a reversal setup and my target is at the 1st H1 high at 1970.00.

Price formed a rejection wick followed by 2 H1 bullish candles to 1948.60 after which price failed to rally higher and has been consolidating around that level throughout London session into NY session. Price spiked 130 pips to 1960.00 in one large H1 bullish engulfing candle with candle close above demand on H1 & H4 showing a potential shift in market structure back to bullish. Price rallied 240 pips back to yesterday's H1 high at 1970.00 filling the 1st H1 range from the H1 high back into demand at 1939.34 and back to the H1 high hence closing out my positions for the day. Price formed strong rejection wicks at the H1 high and failed to break it hence causing a slight retracement back to 1963.30. I anticipate a retest of demand at 1954.80 before a continuation of the rally to the key H1 & H4 supply zone at 1981.68 & 1977.11.