The article covers the following subjects:
Key takeaways
- Main scenario: consider long positions from corrections above the level of 2293.93 with a target of 2500.00 – 2560.00. A buy signal: after the level of 2293.93 is broken. Stop Loss: 2250.00, Take Profit: 2560.00.
- Alternative scenario: breakout and consolidation below the level of 2293.93 will allow the pair to continue declining to the levels of 2218.46 – 2161.56. A sell signal: after the level of 2293.93 is broken. Stop Loss: 2330.00, Take Profit: 2161.56.
Main scenario
Consider long positions from corrections above the level of 2293.93 with a target of 2500.00 – 2560.00.
Alternative scenario
Breakout and consolidation below the level of 2293.93 will allow the pair to continue declining to the levels of 2218.46 – 2161.56.
Analysis
The fifth wave of larger degree 5 is presumably developing on the daily chart, with wave 3 of 5 forming as its part. Apparently, the third wave of smaller degree iii of 3 has formed on the H4 time frame, and a local correction finished developing as the fourth wave iv of 3. The fifth wave v of 3 started developing on the H1 time frame, with wave (i) of v formed as its part. If the presumption is correct, the XAUUSD pair will continue to rise to the levels of 2500.00 – 2560.00 once a local correction (ii) of v ends. The level of 2293.93 is critical in this scenario as a breakout will allow the pair to continue falling to the levels of 2218.46 – 2161.56.
Price chart of XAUUSD in real time mode
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