Descending trend for the pair XAU/USD continues. Estimated pivot point is at a level of 1218.09.
Main scenario: short positions will be relevant from corrections below the level of 1218.09 with a target of 1140.70 – 1120.00.
Alternative scenario: breakout and consolidation above the level of 1218.09 will allow the pair to continue rising to a level of 1252.93.
Analysis: A downward impetus 1 is supposed to continue developing within the wave (C) of senior level on the daily time frame. A downward impetus is developing as the third wave iii of 1 on the 4-hour timeframe with the wave (iii) of iii formed and the local correction iv of (iii) completed inside. Supposedly, the fifth correction of junior level v of (iii) started developing on the 1H time frame. If the presumption is correct, the pair will resume falling to the levels of 1140.70 – 1120.00. The level 1218.09 is critical in this scenario.
Price chart of XAUUSD in real time mode
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