The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 4,055.00 with a target of 4,500.00 – 4,700.00. A buy signal: the price holds above 4,055.00. Stop Loss: below 4,010.00, Take Profit: 4,500.00 – 4,700.00.
- Alternative scenario: Breakout and consolidation below the level of 4,055.00 will allow the asset to continue declining to the levels of 3,910.00 – 3,686.00. A sell signal: the level of 4,055.00 is broken to the downside. Stop Loss: above 4,100.00, Take Profit: 3,910.00 – 3,686.00.
Main Scenario
Consider long positions from corrections above the level of 4,055.00 with a target of 4,500.00 – 4,700.00.
Alternative Scenario
Breakout and consolidation below the level of 4,055.00 will allow the asset to continue declining to the levels of 3,910.00 – 3,686.00.
Analysis
An ascending fifth wave of larger degree 5 is presumably developing on the weekly chart, with wave (3) of 5 forming as its part. The third wave of smaller degree 3 of (3) appears to continue forming on the daily chart, with wave v of 3 developing within. Wave (iii) of v is likely nearing completion on the H4 chart. If this assumption is correct, XAU/USD will continue growing to 4,500.00 – 4,700.00 once a local corrective wave (iv) of v has formed. The level of 4,055.00 is critical in this scenario as a breakout will enable the asset to continue declining to the levels of 3,910.00 – 3,686.00.
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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