XAUUSD – Liquidity Zones in Focus Ahead of Key Mid-Week Flows

[chainsniff]

MARKET CONTEXT

Gold enters today’s market with a neutral-to-bearish structure on H1. After yesterday’s controlled movement and liquidity sweeps on both sides, price continues to trade inside a wide intraday range, waiting for a catalyst for expansion.

Recent Market Drivers:

USD remains steady as traders anticipate upcoming US economic data

Risk sentiment stays mixed → no dominant safe-haven inflows

Institutional orderflow shows accumulation at discount zones but controlled sell pressure at premium zones

Session Expectations:

London Session: Likely to engineer liquidity toward premium levels

New York Session: Higher probability of displacement and real directional movement

Bias: Bearish-to-neutral unless discount zones create a significant CHoCH

Price currently sits mid-range, meaning optimal trades are only at liquidity extremes.

TECHNICAL ANALYSIS (SMC + LIQUIDITY STRUCTURE)
Market Structure

H1 trend: Lower Highs → Lower Lows

Current range: 4186 (premium) → 4038 (discount)

Liquidity layers building above recent highs and below structural lows

Liquidity Map

Buy-side liquidity (BSL): above 4186

Sell-side liquidity (SSL): below 4040 and especially below 4038

Engineered wicks indicate institutional stop hunts in both directions

Imbalance Zones

Premium imbalance: 4186–4185

Mid-range imbalance: 4130–4128

Reaction imbalance: 4092–4090

Deep discount imbalance: 4040–4038

KEY PRICE ZONES (With Clear, Attractive Explanations)
4186–4185 ️ Premium Supply Trap – High-Probability Sell Zone

An unmitigated bearish OB + BSL inducement.
Institutions use this region to trigger breakout buys before reversing strongly.

4130–4128 ️ Mid-Range Rejection Zone – Scalping Buy Opportunity

A small demand pocket sitting just below liquidity.
Ideal for quick intraday rebounds after a liquidity sweep.

4092–4090 ️ Discount Scalping Demand – Clean Reaction Area

SSL lies just below + imbalance fill.
Favorable for low-drawdown buy setups during session transitions.

4040–4038 ️ Deep Discount Demand – Strong Reversal Zone

Major structural support + confluence with HTF discount.
If price reaches here, expect high-probability reversal and strong displacement.

️ TRADE SETUPS (Precision SMC Entries)
SELL SETUP – PREMIUM REVERSAL

Entry: 4186–4185
SL: 4191
TP1: 4170
TP2: 4140
TP3: 4100
Logic: BSL sweep → retest OB → bearish move expected.

BUY SCALP SETUP 1 – MID-RANGE BOUNCE

Entry: 4130–4128
SL: 4122
TP1: 4140
TP2: 4160
Logic: Quick reaction zone following liquidity sweep near mid-range.

BUY SCALP SETUP 2 – DISCOUNT REACTION

Entry: 4092–4090
SL: 4084
TP1: 4105
TP2: 4125
Logic: SSL sweep + imbalance → bounce expected.

BUY SETUP – DEEP DISCOUNT REVERSAL

Entry: 4040–4038
SL: 4032
TP1: 4060
TP2: 4090
TP3: 4120
Logic: High-value institutional demand, excellent for reversal plays.

🧠 NOTES / SESSION PLAN

Avoid trading inside the mid-range → only execute at extremes

Expect false breaks during London opening

NY session likely determines real direction of the day

Confirm entries on M5/M15 (BOS + CHoCH)

Don’t buy near premium zones → avoid liquidity traps

CONCLUSION

XAUUSD maintains a bearish-to-neutral structure on H1.
Premium zone 4186–4185 remains the top-quality sell area, while discount zones 4128, 4090, and 4038 provide high-probability buy setups.

Patience is key — wait for liquidity sweeps before striking.

[Nahid Hossen]

Gold is moving toward major liquidity areas—mid-week action will be crucial.

[Abdul Khan]

Traders should watch volume closely as liquidity gets tapped.