The current XAUUSD formation hints to a 5-wave impulse consisting of cycle-degree waves I-II-III-IV-V.
Currently, wave V is under construction. It consists of primary sub-waves ①-②-③-④-⑤.
Primary wave ④ looks fully completed on a (W)-(X)-(Y) complex correction and now we are in the final ⑤ wave.
In the short term, we could see a slight decline in wave (4) near 1703.61. That is the previous low formed by minor wave A.
Then we could see an upside in impulse wave (5) near 1783.00. At that level, wave ⑤ will be at the 38.2% extension of impulse wave ③.
An alternative scenario suggests that corrective wave ④ will be deeper and take a triangular formation.
As part of the last downward correction, we could expect a short-term decline in wave (E), near 1677.00. This target is on the support trendline.
Then prices could continue up in the last impulse ⑤ wave.
Test your strategy on how gold will fare with Orbex - Open your account now.
