XAUUSD hints at forming a primary impulse wave ⑤ which is part of impulse V of the cycle degree.
The first three parts of the impulse pattern ⑤ are complete.
At the time of writing, correction (4) of the intermediate degree is taking the form of a simple A-B-C zigzag.
Minor sub-waves A and B have ended whilst impulse C is in progress.
In the short-term, impulse C could lead prices down to the 1844.90 area. At that level, correction (4) will be at 61.8% of bullish wave (3).
A rise in the final wave (5) above 2074.49 previously formed by wave (3) could then be expected.
An alternative scenario looks at the intermediate correction (4) taking the form of a bearish zigzag.
Currently, we are in the initial part of the bullish impulse (5).
We can expect prices to extend up in minor sub-waves 3-4 and 5 to the 2172.24 area. At this level, impulse (5) will be at the 76.4% Fibonacci extension of impulse (3).