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XAUUSD – Technical Analysis on the First Half Time Frame
Lana trades based on liquidity and prefers price feedback💛
quick summary
Background: Gold liquidity was weak mid-week, and holiday mentality gradually emerged
Follow frame: H1
Strategy: Buy at the appropriate liquidity area, sell at the psychological reaction to the resistance level
Expectation: There is no major news for the US dollar yet, and it is difficult to expect severe fluctuations
Market background
The market is entering the “rest” stage for many traders before the holidays, resulting in a significant decline in liquidity. There is no important economic data released on the US dollar today, so gold may fluctuate within a narrow range and mainly due to technical factors.
From a macroeconomic perspective, the recent remarks by the White House to maintain a clear distance from the Federal Reserve indicate that the market is still very sensitive to the issue of controlling inflation. However, the short-term impact is not significant and is suitable for light trading scenarios.
Technology Outlook for the First Half of the Year
In the first half of the year, prices oscillated around the equilibrium area after previous fluctuations. The liquidity area at the bottom still acts as a good support, while the top is an area of psychological resistance that may trigger a short-term reaction.
Lana is not looking for a strong breakout due to weak liquidity, but is instead focusing on price reaction in clear areas.
Daily trading scenarios
Main scenario – buying based on liquidity
Purchase: 4302 – 4306
Stop loss: 4298
This is the price area where liquidity is concentrated. If prices return and maintain structure, the likelihood of a technical rebound is high.
Sub-scenario – Sell quickly at resistance
Sales: 4351 – 4355
Stop loss: 4360
This type of sell order is quick in nature and takes advantage of the psychological reaction when price approaches a resistance area. Under current market conditions, it is not recommended to hold orders for a long time.
transaction notes
Poor liquidity → reduced trading volume, preference for quick closing of positions
Avoid expecting large moves when there is no dollar news
Monitor price reaction within the zone and do not place orders between the zones
Lana’s Notes 🌿
Each scenario is just one possibility among many different scenarios on the market. Lana always likes to protect the account, set a clear stop loss, and be ready to overturn the order if the price does not reach the waiting area.
