The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 2788.71 with a target of 2602.03 – 2468.90. A sell signal: if the price holds below 2788.71. Stop Loss: above 2795.00, Take Profit: 2602.03 – 2468.90.
- Alternative scenario: breakout and consolidation above the level of 2788.71 will allow the price to continue rising to the levels of 2880.00 – 3000.00. A buy signal: once the level of 2788.71 is broken to the upside. Stop Loss: below 2780.00, Take Profit: 2880.00 – 3000.00.
Main scenario
Consider short positions from corrections below the level of 2788.71 with a target of 2602.03 – 2468.90.
Alternative scenario
Breakout and consolidation above the level of 2788.71 will allow the pair to continue rising to the levels of 2880.00 – 3000.00.
Analysis
The fifth wave of larger degree 5 is presumably developing on the weekly chart, with wave (5) of 5 forming as its part. Apparently, the third wave 3 of (5) is formed on the daily time frame, with wave v of 3 completed as its part. On the H4 time frame, a descending correction has started developing as the fourth wave 4 of (5), within which wave a of 4 is forming. If the presumption is correct, XAUUSD will continue to drop to the levels of 2602.03 – 2468.90. The level of 2788.71 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 2880.00 – 3000.00.
Price chart of XAUUSD in real time mode
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