XAUUSD MARKET ANALYSIS

Good afternoon traders, it's another new week meaning a new start of opportunities in the financial markets and I hope you're all ready to take advantage and make some profits. Into the markets today, I'm looking at XAUUSD where price dropped from a major H1 & H4 supply zone at 1980.03 & 1966.29 which is the origin of the previous major drop to the H4 demand zone at 1938.96 & 1929.79. Price dropped to 1958.00 with candle closes below supply followed by a rally to retest supply before a continuation of the drop. Took sell positions during NY session at 1966.30 with SL at 1972.00. Setup taken is a drop base drop, a continuation setup and my target is at the 1st H1 low at 1948.00.

Price dropped 70 pips to the 1st H1 minor low at 1959.30 in one strong H1 bearish engulfing candle confirming the bearish sentiment. Price gained stronger bearish momentum during late NY session taking out the minor H1 low and forming a lower low at 1954.58 confirming a shift in market structure to bearish.