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 3100.00 – 3300.00. A buy signal: the level of 2725.20 is broken to the upside. Stop Loss: below 2600.00, Take Profit: 3100.00 – 3300.00.
- 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 2800.00, Take Profit: 2537.18 – 2370.00
Main scenario
Consider long positions from corrections above the level of 2725.20 with a target of 3100.00 – 3300.00.
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 inside. Wave (v) of iii is developing on the H4 chart, with wave iii of (v) presumably formed as its part. If the presumption is correct, the XAU/USD pair will continue to rise to the levels of 3100.00 – 3300.00 once the local correction iv of (v) finishes developing. 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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