The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 2497.30 with a growth target of 2600.00 – 2700.00. A buy signal: if the price holds above 2497.30. Stop Loss: below 2480.00, Take Profit: 2600.00 – 2700.00.
- Alternative scenario: breakout and consolidation below the level of 2497.30 will allow the pair to continue declining to the levels of 2427.72 – 2292.30. A sell signal: once the level of 2497.30 is broken to the downside. Stop Loss: above 2510.00, Take Profit: 2427.72 – 2292.30.
Main scenario
Consider long positions from a correction above the level of 2497.30 with a target of 2600.00 – 2700.00.
Alternative scenario
Breakout and consolidation below the level of 2497.30 will allow the pair to continue declining to the levels of 2427.72 – 2292.30.
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 fifth wave v of 3 is developing on the H4 time frame, with wave (iii) of v continuing forming as its part. On the H1 time frame, a local correction has finished developing as wave iv of (iii), and wave v of (iii) is forming. If the presumption is correct, the XAUUSD pair will continue to rise to the levels of 2600.00 – 2700.00. The level of 2497.30 is critical in this scenario as a breakout will enable the pair to continue falling to the levels of 2427.72 – 2292.30.
Price chart of XAUUSD in real time mode
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