Main scenario: consider long positions above the level of 1749.91 with a target of 2070.98 – 2150.00 after correction.
Alternative scenario: breakout and consolidation below the level of 1749.91 will allow the pair to continue declining to the levels of 1671.75 – 1616.95.
Analysis: The third wave of larger degree (3) continues developing on the daily chart, with the fifth wave 5 of (3) forming inside. Wave iii of 5 appears to be completed and a local correction is developing as the fourth wave iv of 5 on the H4 chart. Apparently, wave (с) of iv is nearing completion on the H1 chart. If this assumption is correct, after the completion of wave (с) of iv the pair will continue to rise to 2070.98 – 2150.00. The level of 1749.91 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1671.75 – 1616.95.
Price chart of XAUUSD in real time mode
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