Main scenario: consider long positions from corrections above the level of 1853.07 with a target of 2000.00 – 2075.27.
Alternative scenario: breakout and consolidation below the level of 1853.07 will allow the pair to continue declining to the levels of 1775.55 – 1717.90.
Analysis: Daily chart: an ascending third wave of larger degree (3) is formed, a descending correction developed as the fourth wave (4), and the fifth wave (5) is unfolding, with the third wave 3 of (5) forming as its part. Apparently, wave iii of 3 is developing on the H4 chart with wave (iii) of iii forming inside. Apparently, the third wave of smaller degree iii of (iii) is formed on the H1 chart, and a local correction is developing as wave iv of (iii). If the presumption is correct, the pair will continue to rise to the levels of 2000.00 – 2075.27 once the correction is over. The level of 1853.07 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 1775.55 – 1717.90.
Price chart of XAUUSD in real time mode
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