XAUUSD: Navigating Key LQZ 4 HIGH-PROBABILITY short

Multi-Timeframe Analysis of XAUUSD

1. 4-Hour Chart

Key Structure:

All-Time High (ATH) at $2,600.318: This level acts as a strong resistance. Price has rejected this zone, showing an initial failure to break higher.

Corrective Channel: The price has formed a small ascending corrective channel after the ATH rejection, which often indicates a potential continuation move downwards.

Key Liquidity Zones (LQZs):

4H LQZ at $2,522.172: This zone could act as the next support if the downtrend continues.

Daily LQZ at $2,511.042: Deeper support that aligns with the broader timeframe.


Implication: Based on the corrective channel and the rejection of ATH, a continuation down towards the 4H and Daily LQZ is likely unless a strong bullish push occurs.


2. 15-Minute Chart

Bearish Momentum: The price formed a sharp drop after the ATH rejection, leading to a corrective structure forming.

Ascending Channel: A bearish ascending channel (corrective) is visible, which may suggest further downside. A clean break below the lower boundary of this channel would confirm bearish continuation.

1H LQZ at $2,542.056: This zone is likely to be the first target if the breakout occurs.

Implication: If the price breaks below the corrective channel, a potential short entry targeting the 1H LQZ is a strong play. A further drop to the 4H LQZ could follow if momentum continues.


3. 5-Minute Chart

Current Reaction:

The price is bouncing from the lower part of the small corrective structure. There is a minor bounce from the 5M LQZ at $2,562.855.


Next Step:

Monitor for price rejection or failure at the 5M LQZ. If it fails to sustain this level, a short opportunity arises.


Implication: A break below the 5-minute structure could lead to a fast move down toward the 1H LQZ. Watch for strong rejections at this level.



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Trade Setup Suggestion:

1. Entry:

Aggressive: If the price breaks the corrective channel on the 15-minute chart, you can enter short near $2,562-$2,564.

Conservative: Wait for a confirmed break and retest of the lower channel boundary.


2. Stop Loss:

Set above the corrective channel high, around $2,580, to protect against sudden bullish reversals.



3. Targets:

First target: 1H LQZ at $2,542.056.

Second target: 4H LQZ at $2,522.172.

Third target: Daily LQZ at $2,511.042 if further downside persists.




Conclusion:

The price structure and liquidity zones indicate a bearish continuation is possible, especially if the corrective channel breaks down. Keep an eye on how price interacts with the liquidity zones to refine entries and exits.