The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions above the level of 2291.67 with a target of 2560.00 – 2650.00 once a correction is over. A buy signal: after the level of 2291.67 is broken. Stop Loss: 2250.00; Take Profit: 2650.00.
- Alternative scenario: breakout and consolidation below the level of 2291.67 will allow the pair to continue declining to the levels of 2161.56 – 1988.70. A sell signal: after the level of 2291.67 is broken. Stop Loss: 2330.00; Take Profit: 1988.70.
Main scenario
Consider long positions above the level of 2291.67 with a target of 2560.00 – 2650.00 once a correction is formed.
Alternative scenario
Breakout and consolidation below the level of 2291.67 will allow the pair to continue declining to the levels of 2161.56 – 1988.70.
Analysis
The fifth wave of larger degree (5) is presumably developing on the daily chart, with wave 3 of (5) forming as its part. On the H4 time frame, apparently, a correction finished developing as the fourth wave iv of 3, and the fifth wave v of 3 is forming. The first wave of smaller degree (i) of v is formed on the H1 chart, and a local correction is nearing completion as the second wave (ii) of v. If the presumption is correct, the XAUUSD will continue to rise to the levels of 2560.00 – 2650.00 after the correction ends. The level of 2291.67 is critical in this scenario as a breakout will enable the pair to continue falling to the levels of 2161.56 – 1988.70.
Price chart of XAUUSD in real time mode
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