The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 4,692.78 with a target of 3,593.00–3,127.70. A sell signal: the price holds below 4,692.78. Stop Loss: above 4,760.00, Take Profit: 3,593.00–3,127.70.
- Alternative scenario: Breakout and consolidation above the level of 4,692.78 will allow the asset to continue rising to the levels of 4,900.00–5,610.00. A buy signal: the level of 4,692.78 is broken to the upside. Stop Loss: below 4,625.00, Take Profit: 4,900.00–5,610.00.
Main Scenario
Consider short positions from corrections below the level of 4,692.78 with a target of 3,593.00–3,127.70.
Alternative Scenario
Breakout and consolidation above 4,692.78 will allow the asset to continue rising to the levels of 4,900.00–5,610.00.
Analysis
On the weekly time frame, an ascending wave of larger degree (3) has presumably formed, and a downward correction (4) is developing. On the daily time frame, wave A of (4) has apparently formed, and correction B of (4) has been completed. On the H4 time frame, wave C of (4) is developing, with the first wave of smaller degree i of C forming as its part. If the presumption is correct, XAU/USD will continue to decline to 3,593.00–3,127.70. The level of 4,692.78 is critical in this scenario as a breakout above it will enable the asset to continue rising to the levels of 4,900.00–5,610.00.
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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