The article covers the following subjects:
Major Takeaways
- Main scenario: Once the correction ends, consider long positions above the level of 2583.80 with a target of 3100.00 – 3300.00. A buy signal: the price holds above 2583.80. Stop Loss: below 2550.00, Take Profit: 3100.00 – 3300.00.
- Alternative scenario: Breakout and consolidation below the level of 2583.80 will allow the pair to continue declining to the levels of 2370.00 – 2078.42. A sell signal: the level of 2583.80 is broken to the downside. Stop Loss: above 2610.00, Take Profit: 2370.00 – 2078.42.
Main Scenario
Consider long positions above the level of 2583.80 with a target of 3100.00 – 3300.00 once the correction is formed.
Alternative Scenario
Breakout and consolidation below the level of 2583.80 will allow the pair to continue declining to the levels of 2370.00 – 2078.42.
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 unfolding on the daily chart, within which wave iii of 3 is completed. On the H4 time frame, the local corrective wave iv of 3 is presumably developing, with wave (a) of iv forming as its part. If the presumption is correct, the XAU/USD pair will continue to rise to 3100.00 – 3300.00 once the corrective wave iv of 3 is completed. The level of 2583.80 is critical in this scenario, as a breakout will enable the pair to continue falling to the levels of 2370.00 – 2078.42.
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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