Forex Trading Library

Gold Correction Nears Completion

0 2,401

The current XAUUSD formation hints to a 5-wave impulse consisting of cycle waves I-II-III-IV-V.

Wave V consists of primary sub-waves ①-②-③-④-⑤.

Currently, correction ④ seems to be forming an intermediate  (A)-(B)-(C)-(D)-(E) triangle. Wave (E) of the corrective pattern is likely to end near 1682.

The target is the extension of the trend line connecting waves (A) and (C).

Completing the triangle could set prices off in wave ⑤ near 1828.06, where wave ⑤ will be equal to half of wave ③.

gold elliott waves

An alternative scenario suggests an extended triangle formation.

If this hypothesis is correct, wave (D) can take the form of a triple zigzag W-X-Y-X-Z.

Thus, we could expect the pair to rise in wave Z near 1731.34. The target is the trend line extension connecting waves W and Y of the zigzag.

Then, prices can be expected to weaken in wave (E) near 1683, which is the triangle’s trendline support line.

Test your strategy on how gold will fare with Orbex - Open your account now. 

Leave A Reply

Your email address will not be published.