Main scenario: consider short positions from corrections below the level of 1866.32 with a target of 1741.81 – 1711.41.
Alternative scenario: breakout and consolidation above the level of 1866.32 will allow the pair to continue rising to the levels of 1920.84 – 1950.00.
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. The fifth wave (5) appears to be forming on the H4 chart, with the first counter-trend wave of smaller degree i of 1 of (5) completed as its part. Apparently, a local correction started to form as wave ii of 1 of (5) on the H1 chart. If this assumption is correct, the pair will continue falling to the levels of 1741.81 – 1711.41. The level of 1866.32 is critical in this scenario as a breakout will enable the pair to continue growing to the levels of 1920.84 – 1950.00.
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.