XAUUSD: Dollar Breaks Down, Gold Eyes 4,400 Buy-Side LiquidityU.S. Dollar Currency IndexTVC:DXYForex_Market_InsightsGold Spot / U.S. Dollar — 1H — paired against the U.S. Dollar Index for directional confirmation. The Dollar Side of the Trade The DXY has just printed its fourth consecutive weekly low, and the structure behind that move matters more than the number itself. Price spent the last two weeks compressing inside a rising wedge — a shallow HTF trendline resistance capping every rally near the 100.00 handle, and a steeper ascending support line underneath. That support has now been broken decisively, with the sell-off on the 7th slicing straight through it and the subsequent bounce failing to reclaim the line. A rising wedge breaking to the downside from a multi-week low is not a neutral signal. The current pullback to 99.70 is retesting the underside of broken support, which is exactly where continuation sellers typically re-engage. As long as DXY holds below the 100.00 trendline resistance, dollar weakness remains the dominant theme — and gold is the direct beneficiary of that. The Gold Side of the Trade Gold's structure on the 1H tells a matching story from the opposite direction. The move began with an aggressive NFP-driven impulse that ran from the propulsion order block near 4,296–4,302 straight up into 4,372. That impulse left behind a clean supply/order block in the 4,358–4,372 region and tagged buy-side liquidity at the highs. Price then rotated back down into the premium zone and worked lower into the bearish order block at 4,318–4,333. Critically, that zone did not hold as supply. Price swept into it, absorbed the sell-side orders resting below, and reversed hard — the last impulsive candle closed back above the entire block. When a bearish order block gets mitigated and rejected rather than respected, it usually signals that the sellers who created it have been cleared out. Current price is 4,351.57, trading back above the mitigated block with the internal structure now leaning bullish. The Thesis Two independent charts are pointing at the same outcome. The dollar has broken its ascending support from a four-week low and is retesting from below. Gold has swept sell-side liquidity, invalidated its bearish order block, and now sits with untapped buy-side liquidity resting overhead at 4,360 and again at 4,372. Liquidity above, weakening dollar behind it. The path of least resistance is up. Levels Immediate resistance / first liquidity target: 4,360 Order block and buy-side liquidity: 4,358 – 4,372 Extended objective if the block is cleared: 4,390 – 4,400 Support / demand: 4,318 – 4,333 (mitigated bearish OB, now flipped) Deeper support: 4,296 – 4,302 (propulsion OB) Invalidation An hourly close back below 4,318 breaks the flipped-demand thesis and puts the propulsion block back in play. On the dollar side, a reclaim of the 100.00 trendline resistance would neutralise the correlation argument entirely. Note on Execution The strongest entries here are on a pullback into the 4,333–4,340 area rather than chasing into the liquidity pool. Buying directly beneath an order block is how you end up as the liquidity rather than the one taking it. Also worth watching the U.S. session open — the dollar retest resolving in either direction will likely decide whether gold clears 4,360 cleanly or stalls under it.