XAUUSD Technical Analysis: Combining Elliott Wave and SMC (Aug 18, 2026)
XAUUSD Technical Analysis: Combining Elliott Wave and SMC (Aug 18, 2026)
In this article, we conduct a precise examination of the gold (XAUUSD) price trend by integrating Elliott Wave theory with Smart Money Concepts (SMC). Traders often use these methodologies to identify market turning points more effectively.
Daily Timeframe (D1) Analysis
The momentum on the daily timeframe has entered the oversold zone, displaying clear signs of a potential bullish reversal. If the daily candle closes with significant upward strength, we anticipate a positive shift. Currently, the price is navigating the corrective structure of wave 4, which may manifest as either a Flat or Triangle corrective pattern.
4-Hour Timeframe (H4) Outlook
Wave B has approached the peak of wave A, confirming the continuation of the corrective structure. To master price action analysis and reporting, consider these essential factors:
- The price must reach one of the target zones.
- H4 momentum needs to remain in the oversold territory.
- The market should confirm a bullish reversal in H4 momentum.
Fair Value Gap (FVG) areas act like magnets in this analysis, pulling the price toward them to fill liquidity. You can find further market updates and supplementary analysis through our trusted sources.
Key Price Targets and Levels (H1)
To enter long positions, monitor the following price levels:
- First Target (Bullish OB): The 4356 range, which serves as initial support.
- Second Target (WC = WA): The 4296 range, located below the EQL liquidity pool.
- Breaker Block: The 4364 range, which provides a strategic buying opportunity if the price experiences a gradual decline.
If the price breaks the EQL liquidity pool, we require additional confirmation to ensure the validity of a Liquidity Sweep.
Frequently Asked Questions (FAQ)
How does combining Elliott Wave and SMC help analyze gold prices?
Integrating these strategies allows traders to identify the overall trend structure via Elliott Wave while pinpointing precise entries using liquidity and supply/demand zones (SMC). Elliott Wave defines the corrective phase, while FVG and Order Blocks provide exact reversal points.
What is an FVG in gold technical analysis?
Fair Value Gaps (FVG) represent areas of imbalance between buyers and sellers. These zones act as magnets, drawing price toward them to rebalance liquidity.
What conditions confirm a bullish reversal on the H4 timeframe?
To confirm a bullish scenario, price must reach a target zone, momentum must show oversold conditions, and a clear upward reversal signal must appear.
What are the key price levels for XAUUSD?
Key levels include 4356 (Bullish OB), 4296 (liquidity target), and 4364 (Breaker Block) for strategic entry planning.
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