XAU/USD Technical Analysis – Gold Rejects Major Resistance After Liquidity Sweep

Gold has delivered an impressive bullish rally over the past few sessions, breaking through multiple resistance levels and establishing a strong bullish market structure. The momentum accelerated after buyers successfully defended the demand zone near the 4,060–4,080 region, leading to a sharp impulsive move that swept liquidity above previous highs. However, after reaching the premium resistance area around 4,290–4,305, price has started showing signs of exhaustion and rejection, suggesting that buyers may be losing momentum in the short term.

The chart highlights a liquidity sweep at the recent high, where price pushed above previous swing highs before quickly facing selling pressure. This type of price action often indicates that institutional traders have collected liquidity before either continuing the trend or initiating a deeper correction. The appearance of a lower high, combined with slowing bullish momentum, suggests that the market is entering a decision zone where the next directional move could be significant.

Currently, Gold remains within a major resistance and supply zone, where sellers have previously entered the market aggressively. As long as price remains below this resistance, the probability of a short-term pullback remains elevated. A rejection from the highlighted supply zone could trigger profit-taking from recent buyers while encouraging fresh sellers to enter the market.

Bearish Scenario

If sellers continue defending the resistance zone around 4,280–4,300, Gold may begin a corrective decline toward the first support near 4,220. A break below this level could expose the next support around 4,180, with the primary bearish target sitting near 4,158, which aligns with the marked target zone on the chart. Increased selling volume and bearish market structure would further strengthen the downside outlook. Failure to hold intermediate support levels could also open the path toward the larger demand zone around 4,080–4,060.

Bearish Targets:
• Target 1: 4,220
• Target 2: 4,180
• Final Target: 4,158
• Extended Target: 4,080–4,060 if bearish momentum accelerates

Bullish Scenario

Despite the current rejection, the overall higher-timeframe trend remains bullish. If buyers regain control and successfully break above the resistance zone near 4,300 with strong volume, the current rejection could simply become a healthy consolidation before another upward expansion. A confirmed breakout above the recent liquidity high would invalidate the immediate bearish outlook and could drive Gold toward fresh all-time highs.

Bullish Targets:
• Target 1: 4,280
• Target 2: 4,300
• Breakout Target: 4,330
• Extended Target: 4,350–4,380 if buying momentum remains strong

Trading Perspective

The market is currently positioned at a critical decision point where both buyers and sellers are actively competing for control. Conservative traders may prefer waiting for confirmation before entering positions, while aggressive traders could look for rejection signals within the highlighted resistance zone. Risk management remains essential since volatility typically increases following liquidity sweeps and strong impulsive moves.

Key Points

• Strong bullish impulse brought Gold into a premium resistance area.
• Liquidity has been swept above previous swing highs.
• Price is showing early signs of rejection from the supply zone.
• A lower high may indicate weakening bullish momentum.
• Immediate support lies around 4,220, followed by 4,180.
• Major bearish target is located near 4,158.
• A breakout above 4,300 would invalidate the short-term bearish setup.
• Overall trend remains bullish on the higher timeframe unless major support levels fail.
• Watch volume and price reaction around resistance for confirmation before entering trades.