The article covers the following subjects:
Major Takeaways
- Main scenario: once the correction ends, consider long positions above the level of 2583.80 with a target of 3100.00 – 3300.00. A buy signal: the level of 2583.80 is broken to the upside. Stop Loss: below 2560.00, Take Profit: 3100.00 – 3300.00.
- Alternative scenario: breakout and consolidation below the level of 2583.80 will allow the pair to continue declining to the levels of 2370.00 – 2078.42. A sell signal: the level of 2583.80 is broken to the downside. Stop Loss: above 2610.00, Take Profit: 2370.00 – 2078.42.
Main Scenario
Consider long positions above the level of 2583.80 with a target of 3100.00 – 3300.00 once the correction is formed.
Alternative Scenario
Breakout and consolidation below the level of 2583.80 will allow the pair to continue declining to the levels of 2370.00 – 2078.42.
Analysis
The ascending fifth wave of larger degree 5 is presumably developing on the weekly chart, with wave (5) of 5 forming as its part. The third wave of smaller degree 3 of (5) appears to continue forming on the daily chart, with wave iii of 3 completed as its part. The local correction has presumably started developing as wave iv of 3 on the H4 time frame. If the presumption is correct, the XAU/USD pair will continue to rise to the levels of 3100.00 – 3300.00 after the correction ends. The level of 2583.80 is critical in this scenario, as a breakout will enable the pair to continue falling to the levels of 2370.00 – 2078.42.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of XAUUSD in real time mode
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