XAUUSD Has Correction Wave (4) Ended?

The XAUUSD formation suggests the development of an intermediate correction wave (4), which is part of a large bullish impulse.

The correction wave (4) has a complex formation of a triple zigzag which includes minor sub-waves W-X-Y-X-Z. Four of the five parts of this pattern look fully completed, and the last fifth sub-wave Z is still under development.

The initial part of the wave Z could take the form of a double ⓦ-ⓧ-ⓨ zigzag of the minute degree. The first actionary wave ⓦ has already formed an (a)-(b)-(c) zigzag. Therefore we can expect the development of the intervening wave ⓧ and the actionary wave ⓨ, as shown in the chart.

Wave Z can complete the intermediate correction (4) near 1636.53. At that level, wave Z will be equal to wave Y.

An alternative scenario suggests that the intermediate correction wave (4) was completed back in April, forming a minor double zigzag.

Thus, if our assumption is correct, a bullish wave (5) is currently under construction. This wave, judging by its internal structure, takes the form of an ending diagonal. We can see the completed correction sub-waves 1-2-3-4 of the minor degree.

The market could move in an upward direction shortly, forming a minute zigzag within the last minor wave 5. The price could rise to the 1964.17 area, at which, intermediate wave (5) will be at 76.4% of impulse wave (3).

Won't your trader friends like this?
About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.” [space height="10"] At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading. Please Director at Visit our site for more details.

Leave a Reply