Main scenario: consider short positions from corrections below the level of 1783.05 with a target of 1650.00 – 1603.30.
Alternative scenario: breakout and consolidation above the level of 1783.05 will allow the pair to continue rising to the levels of 1879.10 – 1997.97.
Analysis: A bearish correction continues developing as the fourth wave of larger degree (4) on the daily chart, with wave C of (4) forming inside. The fifth wave v of С appears to be forming on the H4 chart, with the third wave of smaller degree (iii) of v completed as its part. Supposedly, the local correction is developing on the H1 chart in the shape of wave (iv) of v. If this assumption is correct, the pair will continue falling to 1650.00 – 1603.30 once a local correction (iv) of v has formed. The level of 1783.05 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1879.10 – 1997.97.
Price chart of XAUUSD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.