XAUUSD: Gold Correction Likely To End Near 1422

In the primary degree, wave Ⓨ, which is under development at the time of writing, suggests that intermediate sub-wave (B) is a triple combination (W-X-Y-X-Z). This points to further upside in the short-term.

We could then see a bullish 5-wave impulse in the minute degree (wave ⓒ) driving prices near 1493.6 as part of the last corrective “three.” Then prices could slide into a bearish trend, completing intermediate impulse (C) near 1422.

A different view of the current structure offers an alternative scenario that could still play out, where intermediate wave (B) is completed. This possibility sees minor wave Z as a standard zigzag.

Based on this alternative, we can assume that the market has already completed the first bearish minor impulse of the potential 5-wave leg to the downside.

This suggests that a minor correction 2 could be well completed near 1481.8. And this could be then followed by a decline near 1422.0.

The focus should turn to the previous high (alternative intermediate (B)) and whether prices register a fresh high in an upside attempt.