Main scenario: long positions will be relevant above the level of 1676.71 with a target of  1915.00 – 2075.27 once a correction has formed.

Alternative scenario: breakout and consolidation below the level of 1676.71 will allow the pair to continue declining to the levels of 1602.20 – 1490.37.

Analysis: an ascending third wave of larger degree (3) is formed on the daily chart, and a descending correction developed as the fourth wave (4), supposedly. Apparently, the fifth wave (5) started forming on the H4 chart, with wave 1 of (5) forming inside. The first counter-trend wave of smaller degree i of 1 is formed on the H1 chart, and a local correction is nearing completion as wave ii of 1. If the presumption is correct, the pair will continue to rise to the levels of 1915.00 – 2075.27 once the correction is over. The level of 1676.71 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 1602.20 – 1490.37.

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 LiteForex. 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.

Rate this article:

{{value}} ( {{count}} {{title}} )

Source link