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XAUUSD – Brian | Technical Side of H2 – Consolidation and Range Building Phases
After experiencing a sharp decline recently, gold is now entering a consolidation phase in the second half of the year. The strong downward momentum has slowed, and current price action suggests the market is moving away from trend movement toward range building and accumulation, rather than an immediate continuation of the decline.
This behavior is normal after significant volatility as the market reassesses value and balances supply and demand.
Market structure and current behavior
Structurally, the price has broken out of the previous bullish trend and is currently trading within a specific value range:
Selling pressure has eased following the downward expansion.
The price revolves around the VAL zone and the low value zone, indicating acceptance rather than rejection.
Momentum is no longer impulsive, indicating sideways development rather than trend continuation.
As long as the price remains within this value range, the range trading condition is valid.
Core Areas of Value and Liquidity
Overhead resistance/width
Selling Liquidity: 5,330
POC sales area: 5,045
These areas act as overhead monitors and can identify attempts to the upside during consolidation.
Bottom support/demand
value area
Scalping buying area POC: 4,673
This lower area represents short-term demand as the downward trend may slow during the accumulation phase.
daily forecast
For today’s meeting:
Baseline Forecast: Consolidate sideways within the specified range
Price may be cycling between value boundaries rather than trending strongly
A breakout requires a clear acceptance above resistance or below support to change the trend
To achieve this acceptance, patience and scope awareness are more effective than directional beliefs.
Main points
After big swings, markets tend to stop rebuilding their structure. Currently, gold appears to be absorbing orders and forming an equilibrium, making consolidation the most likely scenario.
See the chart for the different value regions and expected range behavior.
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