Meta description: XAU/USD needs to break below the support trend line and uptrend channel if it wants to confirm the current wave 4 pattern.
Gold (XAU/USD) stopped at the golden ratio 61.8% Fibonacci level, which is an unusually deep Fib level for a wave4 (blue). The breakout direction will decide about the next trend.
XAU/USD
4 hour
XAU/USD needs to break below the support trend line (blue) if it wants to confirm the current wave pattern (wave 4 (blue)). A bullish break makes this wave outlook unlikely and it could indicate a potential bullish move.
Daily
XAU/USD could have completed a wave 4 (blue) correction but a bullish breakout changes that perspective. A bearish break below the support line (blue) and the bottom of the uptrend channel (blue) could indicate the start of 5 (blue) and aim for the Fibonaccilevel. A bullish break could aim for the resistance line (red).
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