A downward correction is likely to continue.

On the 4-hour chart, the price approached the resistance area 1082.77-1085.55 (23.6% correction for the medium-term trend and 100.0% correction for the short-term trend) and has started correcting down. At present, the price is likely to decline along the 61.8% arc to 1072.18 (61.8% correction) and 1068.06 (50.0% correction). An upward trend would resume only when the price overcomes the resistance area 1082.77-1085.55.

On the daily chart, the price is trading near 1082.77 (23.6% correction) so a short-term growth to this level is possible. If the price breaks it out, a growth to 1101.95 (38.2% correction) might follow. Otherwise, the price would trade flat in the area of 1082.77 and then decline along the 23.6% arc to 1068.06.

Trading tips

Short positions seem preferable and can be opened below the level of 1075.80 with targets at 1072.18, 1068.06 and stop-loss at 1079.40.

Alternative scenario

Long positions can be opened after the breakout of the level of 1082.77 with targets at 1090.20, 1101.95 and stop-loss at 1082.00.

XAU/USD: Fibonacci analysis

XAU/USD: Fibonacci analysis

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