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XAUUSD – Second Half Technical Outlook: Liquidity liquidation brings short-term selling pressure | Lana ✨
Gold is showing signs of short-term weakness after a strong bullish expansion. Price action suggests that the market may continue to fall in the near term, not as a change in trend but as a liquidity-driven liquidation within a broader bullish structure.
At this point, the focus shifts from continuity to how prices behave when liquidity is pumped into the structure.
📈 Market structure and price action
The recent vertical rally has the market overextended and thus entering a technically healthy correction phase.
The price broke below short-term support and is currently trading below the downward revision trendline, indicating short-term selling pressure.
This type of structure typically forms when the market needs to liquidate long positions before rebuilding to the next stage.
While the trend on the longer time frames remains bullish, the intraday bias has shifted towards corrective/bearish until liquidity targets are achieved.
🔍 Key liquidity areas on the chart
Short-term selling zone: downtrend line near current price
As long as the price reaction is below this line, it is possible to sell on the rally.
Quick buy liquidity: around 5050-5070
This area could generate a temporary bounce, but interactions here should be viewed as short-term only.
Main bullish order blocks: 4825 – 4830
If the sell-off continues, there may be strong buyer participation in this key area.
Main Volatility Liquidity Areas: 4613 – 4625
This is an area filled with high confidence liquidity and the market may be completing a deeper correction and resetting the broader bullish structure.
🎯 Trading scenario
Main Scenario – Continuous Correction:
As long as prices remain below the downtrend line, gold prices are likely to continue falling to clear liquidity below the recent lows. This favors selling on rallies rather than buying on strength.
Secondary Scenario – Temporary Interaction:
A short-term rebound could occur around the 5050-5070 area, but without a structural recovery, these moves are likely to be corrective rather than trend-affecting.
Structural Defense Scenario:
If price reaches the 4825-4830 or 4613-4625 areas, keep an eye out for signs of stabilization and absorption, which will indicate that liquidity targets have been achieved.
🧠Lana’s POV
This downward move is best viewed as a liquidity liquidation rather than panic selling.
Lana remains patient during the correction phase, avoiding entering early buying positions and waiting for price to reach clear liquidity areas before reassessing the sustainability of the rally.
✨ Let the market accept what it needs and then find the structure to rebuild.
