The article covers the following subjects:
Major Takeaways
Main scenario: Consider short positions from corrections below the level of 3442.25 with a target of 3120.00 – 2950.00. A sell signal: the price holds below 3442.25. Stop Loss: above 3475.00, Take Profit: 3120.00 – 2950.00.Alternative scenario: Breakout and consolidation above the level of 3442.25 will allow XAU/USD to continue rising to the levels of 3600.00 – 3800.00. A buy signal: the level of 3442.25 is broken to the upside. Stop Loss: below 3405.00, Take Profit: 3600.00 – 3800.00.
Main scenario
Consider short positions from corrections below the level of 3442.25 with a target of 3120.00 – 2950.00.
Alternative scenario
Breakout and consolidation above the level of 3442.25 will allow XAU/USD to continue rising to the levels of 3600.00 – 3800.00.
Analysis
An 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 unfolding as wave iv of 3. On the H4 timeframe, wave (b) of iv has formed, and wave (c) of iv is currently unfolding. If the presumption is correct, XAU/USD will continue to drop to 3120.00 – 2950.00. The level of 3442.25 is critical in this scenario as a breakout will enable XAU/USD to continue growing to the levels of 3600.00 – 3800.00.
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
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance broker. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2014/65/EU.
According to copyright law, this article is considered intellectual property, which includes a prohibition on copying and distributing it without consent.
