With a focus on comprehending the nuances of potential market shifts, this article dissects the XAUUSD currency pair’s prospects through Elliott Wave analysis. This approach allows traders to anticipate future price movements by understanding the patterns formed by waves in financial markets.
### Major Takeaways
For those considering their next move, here’s a heads-up: targeting short positions below 2792.90 could be worthwhile, aiming for a dip towards 2418.82 – 2304.21. The key here is if the price hovers below 2792.90, it’s a potential signal to sell. Keep your stop-loss set above 2800, and look to take profit within that lower target range.
An alternative route takes shape if there’s a breakthrough and steady climb past 2792.90. Under this scenario, expect the asset to truck upwards to between 2880.00 and 3000.00. Such movement indicates a buy signal once the price surpasses 2792.90; here, a sound strategy would be a stop loss just under 2785.00, and taking profit at those higher levels.
### Main Scenario
Digging deeper into the main strategy, it’s recommended to explore short positions whenever corrections bring the price under 2792.90, with aims set on a range between 2418.82 and 2304.21.
### Alternative Scenario
Should the price breakout and stabilize above 2792.90, there’s a strong likelihood the pair will ascend to 2880.00 – 3000.00.
### Analysis
The broader Elliott Wave perspective shows the XAUUSD pair possibly progressing in a larger fifth wave on the weekly scale, with a more specific formation of wave (5) contributing to this. On the daily chart, a third wave, 3 of (5), seems to have already made its mark, while a downward correction as the fourth wave, 4 of (5), is potentially underway. As part of this, wave a of 4 has formed on the H4 chart, and a local corrective movement as wave b of 4 is in development. If this analysis holds true, we could anticipate the XAUUSD pair dropping to the marked target range after this corrective phase. The critical resistance marker remains at 2792.90, and breaching this could mean upward momentum toward 2880.00 – 3000.00.
### Disclaimer
Bear in mind that the insights shared here are from the author’s standpoint and aren’t representative of LiteFinance’s official stance. This is purely for informational consumption and isn’t meant as investment advice outlined by Directive 2004/39/EC.
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