The current XAUUSD structure suggests that we are near the end of the cycle-degree impulse that consists of sub-waves I-II-III-IV-V.
Wave V of the 5-wave impulse consists of primary sub-waves ①-②-③-④-⑤. It is also an impulse.
After the bearish correction in wave ④ ended we saw prices moving up in wave ⑤. However, wave ⑤ is not complete yet.
In the medium term, we expect prices to rise in the ending wave ⑤ near 1805.40.
At that level, wave ⑤ will be at the 150% Fibonacci extension of wave ③.
An alternative scenario suggests that the primary correction in wave ④ is not complete yet.
If this hypothesis is correct, the bearish wave could take the form of a flat (A)-(B)-(C) pattern. The 3-3-5 pattern consists of; bearish wave (A) which is a triple zigzag, wave (B) which is also near completion, and a 5-wave wave (C) which hasn’t started yet.
We expect wave (B) to end near the 1746.50 region formed by wave ③.
After that, prices can be expected to fall in the final intermediate wave (C) near wave (A)’s levels – i.e. to 1658.90.
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