The decline at the end of the U.S. trading session was no coincidence. This is when liquidity comes into play – the market simply does what it does best.

On the H2 chart, the previous structure remains intact: the price is in the correction phase towards the highlighted area after breaking out of the main uptrend. However, it is worth noting that at the end of the US trading session this morning, Trump’s comments about continuing the conflict broke out, and stocks fell sharply. The news immediately sparked expectations that gold would find support, but in fact, cash flow reacted in the opposite direction – with gold selling off sharply in the upper sensitive area.

This illustrates an important factor: news is a trigger, not a cause. The market has entered the distribution area (4,750-4,800), and this news is just a tool for smart funds to complete the sell-off. Those who buy in anticipation of the news represent liquidity to sellers.

This decline also confirmed that the above demand area + FVG area is no longer an accumulation area but has become a short-term distribution area. When the price fails to maintain the upper zone after strong news, it is a clear sign of structural weakness in the correction.

With this background, today’s point is clearer: the previous rise was just an operation to attract liquidity, and the fall in late US trading was the catalyst for the continuation of the scenario. If the price continues to react weakly around the 4,700-4,750 area and is unable to recover the 4,800 area, the market may continue to push down to less liquid areas such as 4,630 and deeper to 4,580.

Instead, the recovery will be sustained only if price fully absorbs the selling power of this decline and forms a clear structure with lower highs. But given the market’s reaction to recent news, that’s not a priority right now.

Source link