Descending trend for the pair XAU/USD continues. Estimated pivot point is at a level of 1265.91.
Main scenario: short positions will be relevant from the corrections below the level of 1265.91 with a target of 1220.00 – 1200.00.
Alternative scenario: breakout and consolidation above the level of 1265.91 will allow the pair to continue rising to a level of 1310.14.
Analysis: Supposedly, an ascending wave of senior level C of (В) finished developing in the daily timeframe and the wave (C) started forming. A downward momentum is developing as the third wave iii inside the wave 1 of (C) in the 4-hour timeframe. In the 1-hour timeframe, the ascending correction (iv) of iii has been formed and the fifth wave (v) of iii is developing. If the presumption is correct, the price will continue falling down to the range of 1220.00 – 1200.00. The level 1265.91 is critical in this scenario.
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