Introduction
The gold against the US dollar, XAU/USD, is trending modestly for October 25, 2024. Traders who wish to successfully trade through the session today may do well with a good trading plan that becomes centered on strong levels of support and resistance and implements Smart Money Concepts. The analysis here seems to maintain a bullish view on XAU/USD so long as it remains above that pivot level at 2722.00. Our strategy suggests long that way with an expectation to see 19.00 to 30.00 USD in price movement, and significant resistance in the works. Let’s talk about the trading outlook for today and how Smart Money Concepts can guide your action.
Market Analysis for XAU/USD – October 25, 2024
Up till this point, XAU/USD is showing very nice indications of upward movements coming from the established support base at 2722.00, which in turn suggests stabilization may be temporary. This technical base indicates that market players are on the long positions accumulation side, thus leading the price upwards. With XAU/USD trading marginally above this base, today’s strategy leans more to long positions if the price keeps clearly above 2722.00, with expected gains between 2747.00 and 2758.00, reaching even 2770.00 if bullish momentum is sustained.
XAU/USD Levels to Watch Today
Resistance Levels:
2770.00 – Major resistance area
2758.00 – Minor resistance
2747.00 – First resistance area
Support Levels:
2722.00 – Key pivot and support
2715.00 – Minors support
2708.00 – Lower support. It may be a warning in case this level breaks
But since point 2722.00 acted as support, if the above pivot is broken it could be an indication that there has been a trend reversal thus risking much today.
Our Trading Strategy for Today
Given these main levels, today planned to buy above 2722.00. The bull meant trading at prices going up towards 2747.00 and then to 2758.00, followed by an extension to 2770.00 if the trend maintains in the positive direction.
Primary Target: 2747.00
Secondary Target: 2758.00
Extended Target: 2770.00 if good buying momentum is seen.
This configuration is predicated on an assumption that 2722.00 remains as a support level, cushioning the long entries. As long as XAU/USD continues to advance, it may well blow through resistance levels, thereby increasing even further the buying interest that proves the higher targets.
Integrating Smart Money Concepts (SMC) in Today’s XAU/USD Trade
SMC is an institution-al traders’ market dynamics theory. Its application in the XAU/USD today will explain the market behavior and help align our trading plan with a probable institutional move. Here’s how the principles of SMC align with today’s XAU/USD analysis:
Market Structure: Institutional investors usually set a market structure that the retail traders will be following. In today’s scenario, the support base at 2722.00 makes us believe that institutional players are now accumulating their positions expecting the price to rise. By identifying this level, we blend with “smart money” movements in that context.
Order Blocks: SMC draws attention to the fact that the levels around order blocks can act as support or resistance. In this instance, level 2722.00 is likely an order block by demand because stabilization can be noticed in this area. As such, opening a position through the entry above this level provides an excellent opportunity for the traders in their attempts to make use of institutional demand zone effects.
Liquidity Zones: Stop-loss orders for short positions tend to cluster at resistance levels such as 2747.00 and 2758.00, which act as liquidity zones. The smart money may focus on these levels. Tracking those levels allows a trader to time his exit in light of potential institutional activity.
Conclusion
In today’s highly cautious trading environment in XAU/USD, there still is a potential for a profit while on the bullish side, provided that the 2722.00 level holds as a good support base. Concepts of Smart Money and good technical views would have aided traders to fine-tune their trading strategy and fit into the bigger market movement. The upside momentum targeting 2747.00, 2758.00, and potentially breaking through to 2770.00 marks an upside confirmation of the trend carried forward from institutional order flow. Regardless of whether you are a seasoned trader or a newcomer to the markets, understanding the influence of smart money and making smart money-driven trading decisions with proper risk management can greatly guide your decision-making on whether to trade or not.
Stay ahead of the trading, learn as market conditions change, and trade smart.
Disclaimer
All contents of this website are purely for informational and educational purposes only. Therefore, it is not financial advice or any recommendation to enter into a trade involving these instruments; examples of which can be found in Forex, Gold (XAU/USD), or Cryptocurrencies. Trading and investment in the financial market involve high risks. All or part of the capital you invest may be lost. Only trade or invest with money that you can afford to lose.
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