The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 2377.25 with a growth target of 2560.00 – 2650.00. A buy signal: the price remains above 2377.25. Stop Loss: below 2350.00, Take Profit: 2560.00 – 2650.00.
- Alternative scenario: breakout and consolidation below the level of 2377.25 will allow the pair to continue declining to the levels of 2161.56 – 1988.70. A sell signal: after the level of 2377.25 is broken to the downside. Stop Loss: above 2400.00, Take Profit: 2161.56 – 1988.70.
Main scenario
Consider long positions from corrections above the level of 2377.25 with a growth target of 2560.00 – 2650.00.
Alternative scenario
Breakout and consolidation below the level of 2377.25 will allow the pair to continue declining to the levels of 2161.56 – 1988.70.
Analysis
The fifth wave of larger degree (5) is presumably developing on the daily chart, with wave 3 of (5) forming as its part. On the H4 time frame, apparently, a correction finished developing as the fourth wave iv of 3, and the fifth wave v of 3 is forming. On the H1 chart, the third wave of smaller degree (iii) of v is developing, within which a local correction has formed as wave ii of (iii) and wave iii of (iii) is unfolding. If the presumption is correct, the XAUUSD pair will continue to rise to the levels of 2560.00 – 2650.00. The level of 2377.25 is critical in this scenario as a breakout will enable the pair to continue falling to the levels of 2161.56 – 1988.70.
Price chart of XAUUSD in real time mode
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