The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 3197.50 with a target of 3550.00 – 3800.00. A buy signal: the price rebounds from 3197.50 to the upside. Stop Loss: below 3160.00, Take Profit: 3550.00 – 3800.00.
- Alternative scenario: Breakout and consolidation below the level of 3197.50 will allow the XAU/USD pair to continue declining to the levels of 2950.00 – 2825.40. A sell signal: the level of 3197.50 is broken to the downside. Stop Loss: above 3230.00, Take Profit: 2950.00 – 2825.40.
Main scenario
Consider long positions from corrections above the level of 3197.50 with a target of 3550.00 – 3800.00.
Alternative scenario
Breakout and consolidation below the level of 3197.50 will allow the pair to continue declining to the levels of 2950.00 – 2825.40.
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 ended, and wave v of 3 is unfolding, with wave (i) of v forming as its part. If the presumption is correct, XAU/USD will continue to rise to the levels of 3550.00 – 3800.00. The level of 3197.50 is critical in this scenario, as a breakout will enable the asset to continue falling to the levels of 2950.00 – 2825.40.
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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