The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions above the level of 2950.65 with a target of 3800.00 – 4200.00 after a correction is completed. A buy signal: the price holds above 2950.65. Stop Loss: below 2900.00, Take Profit: 3800.00 – 4200.00.
- Alternative scenario: Breakout and consolidation below the level of 2950.65 will allow the XAU/USD pair to continue declining to the levels of 2574.07 – 2277.38. A sell signal: the level of 2950.65 is broken to the downside. Stop Loss: above 3000.00, Take Profit: 2574.07 – 2277.38.
Main scenario
Consider long positions above the level of 2950.65 with a target of 3800.00 – 4200.00 once the correction ends.
Alternative scenario
Breakout and consolidation below the level of 2950.65 will allow the pair to continue declining to the levels of 2574.07 – 2277.38.
Analysis
The fifth ascending 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 developed as its part. On the H4 chart, a local corrective wave iv of 3 is nearing its end, with wave (c) of iv unfolding within as its part. If the presumption is correct, XAU/USD will continue to rise to the levels of 3800.00 – 4200.00 after the ongoing correction is finished. The level of 2950.65 is critical in this scenario, as a breakout will enable the pair to continue falling to the levels of 2574.07 – 2277.38.
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.