Main scenario: consider long positions from corrections above the level of 1749.36 with a target of 1958.14 – 2016.10.
Alternative scenario: Breakout and consolidation below the level of 1749.36 will allow the pair to continue declining to the levels of 1673.40 – 1568.91.
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 developing on the H4 time frame, with the first wave of smaller degree 1 of (5) formed and a downward correction completed as wave 2 of (5) inside. The third wave 3 of (5) is starting to develop on the H1 time frame, with wave (i) of i of 3 formed inside. If the presumption is correct, the pair may be expected to rise to the levels of 1958.14 – 2016.10. The level of 1749.36 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 1673.40 – 1568.91.
Price chart of XAUUSD in real time mode
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