The article covers the following subjects:
Major Takeaways
Main scenario: Once the correction ends, consider long positions above the level of 3120.70 with a target of 3600.00 – 3800.00. A buy signal: the price holds above 3120.70. Stop Loss: below 3070.00, Take Profit: 3600.00 – 3800.00.Alternative scenario: Breakout and consolidation below the level of 3120.70 will allow the pair to continue declining to the levels of 2950.00 – 2825.00. A sell signal: the level of 3120.70 is broken to the downside. Stop Loss: above 3160.00, Take Profit: 2950.00 – 2825.00.
Main Scenario
Consider long positions above the level of 3120.70 with a target of 3600.00 – 3800.00 once the correction is formed.
Alternative Scenario
Breakout and consolidation below the level of 3120.70 will allow the pair to continue declining to the levels of 2950.00 – 2825.00.
Analysis
The ascending fifth wave of larger degree 5 is presumably developing on the weekly chart, with wave (3) of 5 forming as its part. The third wave of smaller degree 3 of (3) appears to continue developing on the daily chart. As its part, wave iii of 3 is formed, and a local correction is completed as wave iv of 3. Wave v of 3 is developing on the H4 time frame, with wave (i) of v formed and a local correction unfolding in the form of wave (ii) of v. If the presumption is correct, XAU/USD will continue to rise to the levels of 3600.00 – 3800.00 after the correction ends. The level of 3120.70 is critical in this scenario as a breakout will enable the pair to continue falling to the levels of 2950.00 – 2825.00.
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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