XAUUSD MARKET ANALYSIS

 Good afternoon traders, it's another bright Wednesday filled with opportunities in the financial markets and it is our obligation as traders to take advantage of that as it is our daily bread. Into the markets today, I'm looking at XAUUSD where price rallied into a major H1 & H4 supply zone at 1980.03 & 1965.98 which is the origin of the previous major drop to the H1 & H4 demand zone at 1938.63 & 1929.46 and the major H4 & daily demand zone at 1902.64 & 1896.28. Price has filled the major H4 & daily range from the major H1 & H4 supply zone to the H1/H4 demand and the major H4 & daily demand zone and back to the major H1 & H4 supply zone. Price rallied into supply and formed a strong rejection wick on H4 with candle close inside supply followed by a H4 bearish engulfing candle showing a potential bearish reversal. Took sell positions during London session at 1978.23 with SL at 1985.60. Setup taken is a rally base drop, a reversal setup and my target is at 1950.00.

Price gained slight momentum during NY session dropping to 1970 then left a strong rejection wick and rallied back to 1975 but I had already closed out my positions due to low volume. Price failed to break below 1970 and instead broke above supply and rallied to 1987.00 to find more premium price to sell off from. Price formed candle close above supply on H1 & H4 but on the daily price formed a strong rejection wick with candle close inside supply followed by a drop. Price then dropped back into supply on H1 & H4 and closed inside followed by a drop that pushed price to 1961.00 confirming the bearish bias was right but the market needed to accumulate orders from the most premium price before eventually dropping.