Gold (XAU/USD) is showing strong bullish price action. The momentum is likely a wave 3 (pink) and more uptrend is expected.
The current wave outlook is confirming our previous wave analysis where we expected a strong bullish push higher. Price completed a wave 4 (blue) triangle and the bullish breakout has delivered a strong move that is now approaching Fibonacci targets of wave 5 vs 1+3. More upside is possible within the wave 3 (pink).
The XAU/USD could be building an ABC (orange) corrective pattern as part of a wave 4 (green) correction. A bearish breakout could see price fall towards the Fibonacci retracement of wave 4 vs 3 and these Fibonacci levels could act as potential support and bounce zone. A breakout, however, above the resistance (red) could indicate a bullish continuation as part of wave 5 (green).
The analysis has been done with the CAMMACD.MTF template.
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