XAU/USD: Middle leg of the correction pattern nears completion level

Jing Ren Orbex

XAUUSD seems to be forming a large correction pattern taking the form of a cycle triple zigzag.

The 1-hour timeframe shows the final part of the completed cycle intervening wave x, which is a triple zigzag.

There is a possibility that the cycle wave z also takes the form of a primary triple zigzag., and now the price is in the second actionary wave.

It is assumed that the primary wave may end in the form of an intermediate double combination (W)-(X)-(Y) near 1853.21. At that level, wave will be at 76.4% of wave.

Let's consider an alternative option, where the downward movement of the pair in the cycle wave x will continue. The final primary wave is under development. It may take the form of an intermediate zigzag (A)-(B)-(C).

Thus, a downward movement of XAUUSD is expected in the near future.

The final of the correction pattern zigzag (A)-(B)-(C) is possible at 1615.00. That is, near the minimum marked by the intermediate impulse wave (A).

Author

Jing Ren

Orbex

Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.

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