The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 2725.20 with a target of 3000.00 – 3100.00. A buy signal: the price holds above 2725.20. Stop Loss: below 2700.00, Take Profit: 3000.00 – 3100.00.
- Alternative scenario: Breakout and consolidation below the level of 2725.20 will allow the pair to continue declining to the levels of 2537.18 – 2370.00. A sell signal: the level of 2725.20 is broken to the downside. Stop Loss: above 2750, Take Profit: 2537.18 – 2370.00.
Main Scenario
Consider long positions from corrections above the level of 2725.20 with a target of 3000.00 – 3100.00.
Alternative Scenario
Breakout and consolidation below the level of 2725.20 will allow the pair to continue declining to the levels of 2537.18 – 2370.00.
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 developing within. Wave (v) of iii continues unfolding on the H4 time frame, within which wave iii of (v) has formed and the local correction has started developing as wave iv of (v). If the presumption is correct, XAU/USD will continue to rise to the levels of 3000.00 – 3100.00 after the correction ends. The level of 2725.20 is critical in this scenario as a breakout will enable the pair to continue falling to the levels of 2537.18 – 2370.00.
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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