XAUUSD: Gold to Target Buy or Sell-Side Liquidity?

·    November 9, 2023

·      November 9, 2023

·    November 9, 2023


Today I’ll share what will likely determine whether we see XAUUSD (gold) take out buy-side or sell-side liquidity first.

We’ll also take a look at the US Dollar Index (DXY) and a potentially significant reclaim that’s occurring today.

Watch the video below and scroll down for the annotated charts and analysis.

XAUUSD (gold) is pulling back this week following an aggressive 11% rally in October.

I discussed the potential for this pullback last week after gold failed to hold above the November 2022 trend line.

The October 31st candle confirmed the fakeout and the November 3rd candle swept buy-side liquidity and offered a short opportunity.

I got short at $2,001, an entry I posted in the VIP trading group on November 3rd.

Despite today’s bounce, I’m not convinced the low is in for gold.

There’s still a pocket of sell-side liquidity at the October 18th breakout candle just below $1,940.

The October 13th breakout candle also has a pocket of liquidity near $1,900.

Areas of resting liquidity like $1,940 and $1,900 often serve as magnets for price.

But that doesn’t mean XAUUSD needs to tag those areas immediately.

We’ve seen a relatively sharp pullback, so today’s retracement to sweep some buy-side liquidity is expected.

For now, Tuesday’s low at $1,957 is serving as resistance.

A daily close above that would open up $1,971.

Just as there’s considerable sell-side liquidity toward $1,940 and $1,900, there’s also buy-side liquidity as high as $1,985 as a result of this week’s correction.

So while I think we could see lower for gold in the longer term, there’s enough liquidity at higher levels to justify a relief rally in the short term.

NEW! Join the Daily Price Action VIP trading group and pay monthly or quarterly! Special pricing ahead of the trading course launch in December. Limited Time Offer!

XAUUSD 2023 11 09 17 25 44
XAUUSD: Gold to Target Buy or Sell-Side Liquidity? 2

Continue Learning


{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}