This is a dynamic interplay of levels and momentum, where NYC may set the initial tone, but Asia’s reaction will reveal if bears gain another chance or if support strengthens. Follow the signals and trade with discernment.
Here’s the tactical outlook for the remaining NYC session and the upcoming Asia session for XAU/USD, with a focus on whether a short scenario might play out.
NYC Session Outlook
Market Context: The NYC session often sees heightened volatility, especially around major support and resistance levels. Currently, we’re seeing momentum indicators like RSI and MACD staying elevated, indicating sustained bullish strength but hinting at potential exhaustion. As prices approach the critical resistance at 2,771.66 (Fibonacci 100% extension), profit-taking may induce some pullback.
Short Scenario for NYC Session:
1. Trigger for Shorts: If we see a strong bearish rejection candle at or near 2,771.66 on the 15-minute or 1-hour charts, especially with RSI crossing down below 70, this could signal a retracement. 2. Confirmation: A drop below 2,758.89 (Ichimoku Conversion Line on the 1H chart) with a bearish crossover on MACD could confirm a short bias for a quick pullback. 3. Target Zones: • TP1: 2,752.00 (immediate Fibonacci level support). • TP2: 2,746.00 (near lower Ichimoku boundary, should bearish momentum strengthen). 4. Stop-Loss: Place above 2,775.00 (recent highs and resistance buffer).
Asia Session Outlook
Market Context: The Asia session generally shows less aggressive movement compared to NYC, but it often reflects trends established in NYC. If NYC ends with bearish momentum, Asia could see a continuation of the pullback.
Anticipated Short Continuation for Asia Session:
1. Entry: If NYC closes near support levels without a reversal back above 2,760.70, expect Asia to continue testing lower levels, potentially moving down to 2,746.00. 2. Indicator Confirmation: Look for Stochastic RSI to dip below 50 on the 1-hour chart, and for Ichimoku’s Chikou Span to cross below the price, reinforcing bearish momentum. 3. Key Supports: • Immediate Support: 2,752.00 (potential bounce level). • Deeper Target: 2,742.00 if momentum confirms through Asia.
Final Call
If NYC fails to break above 2,771.66 and shows bearish signals, expect a tactical short opportunity in NYC, likely continuing into Asia, with TP levels of 2,752.00 and deeper support targets around 2,746.00-2,742.00 if the sell-off gains traction.
Stay vigilant for any sharp reversals; if support holds in NYC, Asia may look to buy back up to re-test recent highs.
Mohamed
THE Ichimoku MAN on the Nile
#traders4traders
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