XAUUSD H1 – Trading Liquidity During the Year-End Session
Gold remains in a bullish structure, but this is a holiday market with weaker liquidity as many banks are closed. The best approach here is to trade around liquidity and value areas, rather than chasing price during extended moves.
TECHNICAL OVERVIEW
On H1, price continues to respect an ascending channel, moving through expansion and pullback phases.
After the latest strong push, the market is now consolidating and rotating, which typically favours level-based execution.
Momentum remains positive overall, but it is not accelerating aggressively, suggesting selective buying and a higher probability of liquidity sweeps during thin conditions.
PRIORITY SCENARIO – MAIN PLAN
Buy the pullback at key liquidity zones inside the bullish channel
Buy liquidity zone: 4475 – 4478
Buy POC zone: 4409 – 4412
Technical rationale:
The 4475–4478 area is a near-term liquidity pocket within the channel where buyers often step in during technical pullbacks.
The 4409–4412 region aligns with the Volume Profile POC, a value area where price frequently stabilises and rebalances supply and demand.
Expected price behaviour:
A corrective move into these liquidity zones, followed by a bullish reaction, can set up the next leg higher within the channel structure.
ALTERNATIVE SCENARIO – SECONDARY PLAN
Short-term sell only at the upper boundary as a scalp
Sell zone: 4565 – 4469
Context:
This zone sits near the upper channel boundary where profit-taking is common, especially when liquidity is thin. Any sell idea should be treated as a short-term scalp rather than a trend reversal.
WHY LIQUIDITY-BASED TRADING MATTERS HERE
Holiday sessions can produce irregular flows, sharp spikes, and stop runs
Volume Profile helps define higher-probability execution areas instead of emotional entries
Trading around value and liquidity improves consistency when price action becomes less reliable
FUNDAMENTAL BACKDROP AND MARKET SENTIMENT
OANDA traders highlight multiple drivers behind the strength in precious metals, with longer-term projections pointing to further upside for gold and silver next year. The narrative remains supported by safe-haven demand, expectations of easier monetary conditions, and a softer USD tone.
Still, in the short term, the holiday environment can distort price action, making liquidity zones even more important for execution.
Gold remains in a bullish structure, but this is a holiday market with weaker liquidity as many banks are closed. The best approach here is to trade around liquidity and value areas, rather than chasing price during extended moves.
TECHNICAL OVERVIEW
On H1, price continues to respect an ascending channel, moving through expansion and pullback phases.
After the latest strong push, the market is now consolidating and rotating, which typically favours level-based execution.
Momentum remains positive overall, but it is not accelerating aggressively, suggesting selective buying and a higher probability of liquidity sweeps during thin conditions.
PRIORITY SCENARIO – MAIN PLAN
Buy the pullback at key liquidity zones inside the bullish channel
Buy liquidity zone: 4475 – 4478
Buy POC zone: 4409 – 4412
Technical rationale:
The 4475–4478 area is a near-term liquidity pocket within the channel where buyers often step in during technical pullbacks.
The 4409–4412 region aligns with the Volume Profile POC, a value area where price frequently stabilises and rebalances supply and demand.
Expected price behaviour:
A corrective move into these liquidity zones, followed by a bullish reaction, can set up the next leg higher within the channel structure.
ALTERNATIVE SCENARIO – SECONDARY PLAN
Short-term sell only at the upper boundary as a scalp
Sell zone: 4565 – 4469
Context:
This zone sits near the upper channel boundary where profit-taking is common, especially when liquidity is thin. Any sell idea should be treated as a short-term scalp rather than a trend reversal.
WHY LIQUIDITY-BASED TRADING MATTERS HERE
Holiday sessions can produce irregular flows, sharp spikes, and stop runs
Volume Profile helps define higher-probability execution areas instead of emotional entries
Trading around value and liquidity improves consistency when price action becomes less reliable
FUNDAMENTAL BACKDROP AND MARKET SENTIMENT
OANDA traders highlight multiple drivers behind the strength in precious metals, with longer-term projections pointing to further upside for gold and silver next year. The narrative remains supported by safe-haven demand, expectations of easier monetary conditions, and a softer USD tone.
Still, in the short term, the holiday environment can distort price action, making liquidity zones even more important for execution.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.