XAU/USD Asian Session. Short. R:R - 3:1

8 Nov 2021

Personally I see gold melting into the asian session to a better demand zone at the 1807/8 mark. Gold is preparing for a big move up to the monthly / weekly higher resistance at the 1834/6 level. This is leading up to when CPI data is announced on Wednesday and when I would imagine gold to either react to this zone with a wick up and then melt or continued buying power based on higher time frames. There is also a significant amount of shorts at the 1830 area where smart money has placed blocs of these shorts since August. However, for now, in order to reach the 1830 mark we will need significantly more liquidity to push higher and after golds very slow move of buying power you can almost feel buyers slowly entering the market however the bullish momentum is fading. I expect gold to fall to a better price / supply zone at the 1807 mark before the NY session tomorrow, great risk reward on this trade as well!