TRADING INTO THE FUTURE - AUGUST 14→19

XAU/USD

Various information provided on the long-term quarterly perspective. We’ve had multiple attempts to break the high, which has now created a trendline failure swing. We look to rebalance, with a range of 400+ pips available.

The next step for us is to wipe out the lows from the previous months, as that’s where liquidity is resting. Although, we will need more liquidity in-order to do that. We may see an indecisive week of price action before we break-down: this will create the FVG (internal liquidity) required for us to continue downwards. If we were to break down it would be to the 1866 region. Gold PA is smooth on HTF but choppy LTF currently - not looking to trade it unless an obvious setup occurs within LTF.

DXY

Solid PA on the quarterly as well. We can see price recently took out ELR during our current candle, - which gives us an indication that we have high probability of going towards IRL - let’s drop down one TF.

Beautiful - we can see where price has an inclination of going on the monthly TF, and that’s the IRL(FVG) located at 107.718 (CE).

The weekly time frame is quite contrasting with the daily. It shows that the closest range of liquidity is directly above us at 103.587. If it takes that level, it would require a drop to 101.530 to rebalance.

On the daily time frame, we see the beauty of the IPDA ranges and how the previous ones were wiped out. They also offer us insight into the next area of interest. Depending on how this daily candle closes, we may see a tap into a newly created FVG before blasting into the 103.5 regions. But we must be wary as there have been multiple instances of price returning to the previous FVG before continuing. In this case, that would be the blue one highlighted at 102.7.

EU

Rebalanced an FVG on 3M, we now look for liquidity on LTF.

Weekly took out liquidity as we saw on the 3M - we had a balanced price range offer a good setup for shorts. The next liquidity zone is previous LH’s available.

Same process here - we must wait a day to get the revealing of which FVG we will be tapping into before dropping. We will await for this to be complete before taking shorts into the liquidity noted.

We must also await for price to enter premium before taking our shorts, which is in alignment with the previously noted FVG.