XAUUSD Weekly Analysis 02/22/2025

Fundamental analysis

1. Overview of Momentum and Market Structure

• Current Momentum: Bullish

• Previous Week’s Performance: Bullish

• Range: 2877 – 2954

• Expectations: Price is expected to push higher towards key liquidity zones before potential reversals.

Trading Plan

For Short Positions

Strategy:
Look for sell opportunities at strong resistance and liquidity zones:

• Sell Levels:

  • 2954 (Extreme Liquidity - Major Resistance & High-Probability Reversal Zone)

  • 2984 (Extension - Potential Overbought & Reversal Area)

Sell Targets:

• 2916 (H4 Liquidity - First Downside Target & Potential Support Zone)

• 2906 (Daily FVG - Institutional Demand & Buyback Zone)

• 2900 (H4 FVG - Strong Support & Key Accumulation Area)

• 2892 (H4 Liquidity - Critical Demand Zone & Reversal Area)

Bullish Bias

Strategy:
Look for buy opportunities from strong demand and liquidity zones:

• 2916 (H4 Liquidity - Short-Term Demand & Accumulation Zone)

• 2906 (Daily FVG - Institutional Demand & Possible Reversal Area)

• 2900 (H4 FVG - Key Support & Liquidity Grab Zone)

• 2892 (H4 Liquidity - Deep Liquidity Pool & Institutional Buy Zone)

Primary Targets:

• 2942 (H4 Liquidity - First Major Upside Target & Resistance Zone)

• 2949 (H4 Liquidity - Key Distribution & Potential Reversal Level)

• 2954 (Extreme Liquidity - Strong Resistance & Liquidity Sweep Area)

• 2984 (Extension - Potential Expansion Level for Further Upside)

Summary

• Bullish bias remains valid above 2892, targeting 2942, 2949, 2954, and 2984.

• A clean break above 2954 (Extreme Liquidity) could accelerate further upside movement towards 2984.

• Short setups become valid near 2954 and 2984 for potential reversals.

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

Technical analysis

Gold Holds Above $2,930 Amid PMI Data and Geopolitical Developments

Gold (XAU/USD) remains above $2,930 after correcting from its record high of $2,954 on Thursday. The pullback comes as mixed US PMI data and a weak 10-year US Treasury bond yield below 4.5% continue to support Gold's price. Investors are closely monitoring Germany's general election this weekend, which could impact US-Europe relations and, in turn, influence Gold's movement.

While immediate catalysts seem absent, Gold's first support level at $2,923 holds, and if prices recover, the next resistance is at $2,954, potentially paving the way for further gains toward $3,000. Market reactions early next week will be key in determining Gold's next direction.