A downward correction can continue.

On the 4-hour chart, the price reached the level of 1122.72 and started the downward correction that could continue to the level of 1109.60 (23.6% Fibonacci correction, near its crossover with the 23.6% arc and 38.2% fan line), and possibly to 1102.50 (strong level where 38.2% corrections for the short-term and medium-term trends overlap).

On the daily chart, the price is testing the level of 1117.70 (50% correction). Its breakdown would open the way towards 1102.00 (38.2% correction), and farther down towards a crossover with the 61.8% fan line near the level of 1092.50. In case of a price rebound from the level of 1117.50, the pair could grow in the medium-term towards the level of 1133.30 (61.8% correction).

Trading tips

Short positions can be opened from the level of 1115.50 with targets at 1109.60, 1102.50 and stop-loss at 1118.00.

Alternative scenario

Long positions can be opened after the breakout of the level of 1120.95 with the target at 1133.30 and stop-loss at 1117.00.

XAU/USD: Fibonacci analysis

XAU/USD: Fibonacci analysis

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