XAU/USD Pullback Before New Bullish Break and Uptrend
|Gold – XAU/USD
Daily
The XAU/USD triangle chart pattern is respecting the shallow Fibonacci retracement levels of wave 4 vs 3 which is typical behavior for a wave 4 (blue) pattern. A bullish breakout above the resistance trend line (red) would confirm the uptrend continuation towards the Fibonacci targets of waves 5 whereas an unexpected break below the 50% Fib would indicate that the bullish momentum is losing its steam. At the moment a new bull run on XAU/USD is becoming increasingly more likely.
4 hour
The XAU/USD seems to have completed a bearish ABC pattern (green) within the wave 4 (blue) pattern. The recent bullish momentum is probably indicating the restart of the uptrend via wave 1 (green). The current pullback is therefore a wave 2 (green) as long as price stays do not break below the bottom of wave 1, which would invalidate the wave 1-2 pattern (green). The same idea is valid for this chart as well: a bullish breakout could indicate the start of an uptrend via a potential wave 3 (green) pattern.
The analysis has been done with the CAMMACD.MTF template.
For more daily technical and wave analysis and updates, sign-up up to our ecs.LIVE channel.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.