The article covers the following subjects:
Major Takeaways
Main scenario: Consider long positions from corrections above the level of 3291.20 with a target of 3600.00 – 3800.00. A buy signal: the price holds above 3291.20. Stop Loss: below 3255.00, Take Profit: 3600.00 – 3800.00.Alternative scenario: breakout and consolidation below the level of 3291.20 will allow the pair to continue declining to the levels of 3114.27 – 2950.00. A sell signal: the level of 3291.20 is broken to the downside. Stop Loss: above 3325, Take Profit: 3114.27 – 2950.00.
Main scenario
Consider long positions from corrections above the level of 3291.20 with a target of 3600.00 – 3800.00.
Alternative scenario
Breakout and consolidation below the level of 3291.20 will allow the pair to continue declining to the levels of 3114.27 – 2950.00.
Analysis
The fifth ascending 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 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 is in progress. Within it, wave (iii) of v started unfolding. If the presumption is correct, XAU/USD will continue to rise to the levels of 3600.00 – 3800.00. The level of 3291.20 is critical in this scenario as a breakout will enable the pair to continue falling to the levels of 3114.27 – 2950.00.
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.
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