Main scenario: long positions will be relevant above the level of 1735.74 with a target of 1915.00 – 2075.27 once a correction has formed.
Alternative scenario: breakout and consolidation below the level of 1735.74will allow the pair to continue declining to the levels of 1673.63 – 1602.20.
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) and, supposedly, the fifth wave (5) started forming. Apparently, on the H4 chart, the first wave of smaller degree 1 of (5) formed, the correction wave 2 of (5) formed as well and wave 3 of (5) started developing. On the H1 chart, supposedly, a local correction in the form of wave ii of 3 finished developing and wave iii of 3 started forming. 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 1735.74 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 1673.63 – 1602.20.
Price chart of XAUUSD in real time mode
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