Main scenario: consider long positions from corrections above the level of 1770.30 with a target of 1851.32 – 1877.16.
Alternative scenario: breakout and consolidation below the level of 1770.30 will allow the pair to continue declining to the levels of 1722.72 – 1675.55.
Analysis: An ascending third wave of larger degree (3) formed on the daily time frame, and a descending correction developed as wave (4), supposedly. H4 time frame: the fifth wave (5) appears to be forming, with the first wave of smaller degree 1 of (5) forming inside. Apparently, the third wave iii of 1 finished developing, corrective wave iv of 1 of (5) is completed, and wave v of 1 is forming on the H1 time frame. If the presumption is correct, the pair will continue to rise to the levels of 1851.32 – 1877.16. The level of 1770.30 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1722.72 – 1675.55.
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.