The article covers the following subjects:
Major Takeaways
Main scenario: Once the correction ends, consider long positions above the level of 3125.72 with a target of 3600.00 – 3800.00. A buy signal: the price holds above 3125.72. Stop Loss: below 3080.00, Take Profit: 3600.00 – 3800.00.Alternative scenario: Breakout and consolidation below the level of 3125.72 will allow the pair to continue declining to the levels of 2950.00 – 2825.40. A sell signal: the level of 3125.72 is broken to the downside. Stop Loss: above 3170.00, Take Profit: 2950.00 – 2825.40.
Main Scenario
Consider long positions above the level of 3125.72 with a target of 3600.00 – 3800.00 once the correction is formed.
Alternative Scenario
Breakout and consolidation below the level of 3125.72 will allow the pair to continue declining to the levels of 2950.00 – 2825.40.
Analysis
The ascending fifth wave of larger degree 5 is presumably developing on the weekly chart, with wave (5) of 5 forming as its part. The third wave of smaller degree 3 of (5) appears to continue forming on the daily chart, with wave iii of 3 completed as its part. On the H4 chart, a correction finished developing as wave iv of 3 and wave v of 3 started to form. Within it, wave (i) of v is completed. If the presumption is correct, the XAU/USD pair will continue to rise to 3600.00 – 3800.00 once a local correction is completed as wave (ii) of v. The level of 3125.72 is critical in this scenario as a breakout will enable the pair to continue falling to the levels of 2950.00 – 2825.40.
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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