XAU/USD – Liquidity Cleared, Gold Reloads for the Next Breakout🔍 Market Context
This morning, gold price (XAU/USD) experienced a classic liquidity sweep :
The price surpassed the previous high of 4058 , touched 4060 , wicked strongly , and short-term corrected – a textbook “liquidity hunt” by major funds.
After this drop, the price recovered back to the old ATH zone (4055 – 4060) .
This indicates that short-term sellers have weakened , and buyers are reclaiming the crucial structure zone .
Therefore, selling strategy is no longer optimal , instead, the market is preparing for a re-accumulation – next breakout.
💎 Technical Analysis
Current ATH: 4060 USD
Previous High: 4058 USD
This morning's liquidity sweep “cleared out” liquidity above, paving the way for a re-accumulation phase before the next rise.
The zone 4048 – 4052 is acting as a retest zone – if it holds, this could be the “launchpad” for a breakout to higher price zones.
Overall Structure: still bullish , no signs of medium-term reversal.
⚙️ Key Price Zones
Retest Zone: 4048 – 4052 → support zone after the sweep, where the price might bounce back.
Breakout Zone: 4065 – 4070 → zone confirming buyers regain dominance.
Extended Target: 4090 – 4100 USD.
Invalidation Zone: below 4040 USD → if breached, the short-term bullish structure will weaken.
📈 Trading Scenarios
1️⃣ Buy Continuation Scenario – Buy with the main trend
Wait for the price to retest the 4048 – 4052 zone , observe bullish candle reactions or confirmation signals (Engulfing, Rejection).
Open a buy order upon confirmation of holding the support zone.
Target: 4065 → 4090 USD.
Stop Loss: below 4040 USD.
➡️ This is a trend-following scenario, with the highest probability when the market has completed the liquidity sweep and is re-accumulating.
2️⃣ Buy Breakout Scenario – Buy on confirmed breakout
If the price breaks and closes above 4065 , it signals that major funds have returned.
Open buy stop or limit retest breakout around 4065 – 4070.
Extended Target: 4090 → 4100 USD.
Stop Loss: below 4050 USD.
➡️ This scenario suits momentum traders, avoiding the risk of “fake breakout” by waiting for clear confirmation.
⚠️ Risk Management
Do not sell against the trend at the ATH zone, as liquidity above has been taken.
Maintain reasonable volume when trading around the peak zone.
Prioritize buying when there is confirmation of the bullish structure holding the 4050 zone .
💬 Conclusion
This morning's liquidity sweep has shaken out weak hands , while helping gold pave the way for the next rise .
Currently, the price is re-accumulating around the old peak zone 4055 – 4060 , and if the zone 4048 – 4052 continues to hold, there is a high possibility that gold will break out to the 4090 – 4100 USD zone in the upcoming sessions.
👉 Reasonable Strategy:
Wait to buy at the support zone or buy when the price breaks above 4065.
Avoid selling against the trend now – the risk is very high as major funds have shifted to the accumulation phase.
