XAUUSD Daily Analysis 02/21/2025

Technical analysis

1. Overview of Momentum and Market Structure

• Previous Day: Bullish

• Current Bias: Bullish

• Range: 2924 – 2954

• Expectations: Price is expected to rally towards liquidity zones before potential reversals.

Trading Plan

Bullish Bias

Strategy:
Look for buy opportunities from key demand zones:

• 2926 (H1 Demand Zone - Key Support & Accumulation Area)

Primary Targets:

• 2949 (H1 Liquidity - Short-Term Resistance & Potential Take-Profit Zone)

• 2954 (Extreme Liquidity - Major Breakout Level)

Secondary Targets:

• 2966 (Extension - Institutional Liquidity Zone)

• 2974 (Extension - High-Probability Reversal Zone)

For Short Positions

Strategy:
Look for sell opportunities at strong resistance levels:

• Sell Levels:

  • 2954 (Extreme Liquidity - Potential Rejection Area)

  • 2966 (Extension - Key Distribution Zone)

  • 2974 (Extension - Major Liquidity Grab & Possible Reversal Level)

Sell Targets:

• 2924 (H1 Liquidity - First Downside Target & Reaccumulation Zone)

• 2915 (H4 FVG - Strong Demand Zone for Buy Re-entry)

• 2906 (Daily FVG - Key Institutional Buying Area)

Summary

• Bullish bias remains valid above 2926, targeting 2949, 2954, 2966, and 2974.

• A clean break above 2954 (Extreme Liquidity) may trigger further upside momentum.

• Short setups become valid near 2954, 2966, and 2974 for potential reversals.

• Monitor price action at liquidity levels and FVGs for trade confirmations.