XAUUSD – Another Leg Lower Before Weekly Demand?

Jun 7

Gold continues to respect a bearish market structure after multiple Breaks of Structure (BOS) and the failure to reclaim previous key levels.

The current setup suggests that price may still be searching for liquidity lower before a meaningful bullish reaction occurs.

📊 Market Structure Analysis
The previous 4H CHOCH failed to generate a sustained bullish trend.
Multiple bearish BOS confirmations indicate sellers remain in full control.
Price is currently trading below the key Fibonacci retracement zone:
0.5 → 4414
0.618 → 4438
0.786 → 4473

This zone now acts as a premium area where sellers may look to re-enter the market.

🧠 Smart Money Perspective

The current delivery appears to follow:

Distribution → BOS → Retracement → Liquidity Hunt Lower

The projected path suggests:

1️⃣ Short-term relief bounce into the Fibonacci zone
2️⃣ Rejection from premium pricing
3️⃣ Final liquidity sweep toward the Weekly Demand Zone

This would allow institutions to capture remaining sell-side liquidity before a larger reaction.

📉 Bearish Scenario

As long as price remains below the retracement zone:

🎯 4350 intermediate liquidity

🎯 4300 psychological support

🎯 4250–4260 Weekly Demand Zone

The highlighted weekly demand area could become the next major battlefield between buyers and sellers.

🚀 Bullish Reversal Scenario

If price sweeps the weekly demand zone and shows strong rejection:

Market could establish a higher low
Short covering may accelerate upside momentum
Potential recovery targets:
4438
4473
4520 liquidity zone
⚠️ Invalidation

A strong 4H close above 4473 (0.786 Fib) would weaken the bearish continuation thesis and suggest buyers are regaining control.

💡 Final Thought

This chart reflects a classic Smart Money sequence:

Bearish Structure → Retracement Trap → Sell-Side Liquidity Sweep → Potential Expansion

The Weekly Demand Zone may hold the key to the next major move in Gold.

Jun 13

Trade closed: target reached