XAU/USD: wave analysis

The pair may grow.

On the daily chart, the third wave of the higher level (3) develops, within which the wave 5 of (3) forms. Now, the wave iii of 5 of the lower level has formed, a local correction has developed as the wave iv of 5, and the wave v of 5 is forming. If the assumption is correct, the pair will grow to the levels of 2130.03–2200.00. In this scenario, critical stop loss level is 1902.82.

Main scenario

Long positions will become relevant during the correction, above the level of 1902.82 with the targets at 2130.03–2200.00. Implementation period: 7 days and more.

Alternative scenario

The breakdown and the consolidation of the price below the level of 1902.82 will let the pair go down to the levels of 1862.02–1822.71.