Descending trend for the pair XAU/USD continues. Estimated pivot point is at a level of 1236.00.
Main scenario: short positions will be relevant from corrections below the level of 1236.00 with a target of 1140.70 – 1120.00.
Alternative scenario: breakout and consolidation above the level of 1236.00 will allow the pair to continue rising to a level of 1306.58.
Analysis: A downward impetus 1 is supposed to continue developing within the wave (C) of senior level on the daily time frame. Another downward impetus is developing as the third wave iii of 1 on the 4-hour timeframe with the wave (iii) of iii formed inside. Supposedly, an upward correction of junior level iv of (iii) is developing on the 1H time frame. If the presumption is correct, the pair will resume falling to the levels of 1140.70 – 1120.00 once the correction has finished. The level 1236.00 is critical in this scenario.
Price chart of XAUUSD in real time mode
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