XAU/USD Completing Bullish ABC Zigzag Pattern at $1340

Chris Svorcik Elite CurrenSea

The XAU/USD made a strong bullish breakout but price is now approaching a hefty and heavy resistance zone which could send price back down again.

XAU/USD

Daily

The XAU/USD wave pattern is suggesting a bearish bounce at the resistance levels for one more push lower. The bearish swing could expand and complete the wave E (pink) of a larger triangle pattern. However, if price manages to break above the top of wave D (pink), then the larger bearish correction is invalidated and an immediate uptrend continuation seems imminent.

4 hour

The XAU/USD strong impulsive price swing is probably a wave 3 (green) pattern, which seems to be part of larger bullish ABC (blue) zigzag. A pullback is expected to bounce at the Fibonacci retracement levels of wave 4 vs 3 and move up for one more higher high to complete wave 5. However, a break below the 50% Fibonacci retracement level would make this wave outlook less likely.

The analysis has been done with the CAMMACD.MTF template.

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Author

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

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