Main scenario: consider short positions below the level of 1915.92 with a target of 1821.97 – 1794.22.
Alternative scenario: breakout and consolidation above the level of 1915.92 will allow the pair to continue rising to the levels of 1958.14 – 2016.10.
Analysis: an ascending third wave of larger degree (3) formed on the daily time frame, and a descending correction developed as wave (4), supposedly. The fifth wave (5) appears to be forming on the H4 time frame, with the first wave of smaller degree 1 of (5) formed inside. On the H1 time frame, a descending correction is developing as wave 2 of (5), with wave b of 2 forming inside. If the presumption is correct, the pair will continue to drop to the levels of 1821.97 – 1794.22. The level of 1915.92 is critical in this scenario as a breakout will enable the pair to continue growing to the levels of 1958.14 – 2016.10.
Price chart of XAUUSD in real time mode
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