Main scenario: consider long positions above the level of 1865.40 with a target of 2000.00 – 2050.00 after correction.
Alternative scenario: breakout and consolidation below the level of 1865.40 will allow the pair to continue declining to the levels of 1818.01 – 1772.93.
Analysis: a descending correction appears to have formed as the fourth wave (4) of larger degree on the daily chart, with wave С of (4) completed inside. H4 chart: apparently, the fifth wave (5) started forming, with the first wave of smaller degree 1 of (5) forming inside. Supposedly, wave iii of 1 finished forming on the H1 chart, and a local correction started unfolding as wave iv of 1. If the presumption is correct, the pair will continue to rise to the levels of 2000.00 – 2050.00 once the correction is over. The level of 1865.40 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 1818.01 – 1772.93.
Price chart of XAUUSD in real time mode
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