The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 2728.40 with a target of 2418.82 – 2304.21. A sell signal: the price holds below 2728.40. Stop Loss: above 2735, Take Profit: 2418.82 – 2304.21.
- Alternative scenario: Breakout and consolidation above the level of 2728.40. will allow the asset to continue rising to the levels of 2792.47 – 2880.00. A buy signal: the level of 2728.40 is broken to the upside. Stop Loss: below 2720.00, Take Profit: 2792.47 – 2880.00.
Main Scenario
Consider short positions below the level of 2728.40 with a target of 2418.82 – 2304.21 once a correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 2728.40 will allow the pair to continue rising to the levels of 2792.47 – 2880.00.
Analysis
The fifth wave of larger degree (5) is presumably developing on the daily chart, with wave 3 of (5) formed as its part. Apparently, a descending correction is developing as the fourth wave 4 of (5) on the H4 chart, with waves a of 4 and b of 4 formed as its parts. Wave c of 4 has started developing on the H1 chart, within which the first wave of smaller degree (i) of c has formed and a local corrective wave (ii) of c is unfolding. If the presumption is correct, XAU/USD will continue falling to 2418.82 – 2304.21 after the correction is over. The level of 2728.40 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 2792.47 – 2880.00.
Price chart of XAUUSD in real time mode
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