The chart below shows XAUUSD/GOLD. We see a triangle thurst higher. This sharp move higher confirmed the correction that we had seen for several months.

The move higher was overlapping and didn’t have the distinct, five-wave impulse we know. As expected the move higher did not reach new highs. The sharp move lower confirmed that we were dealing with a flat pattern. We have a clear five-wave move lower to mark wave 1 or A and a three-wave correction to mark.

We have a clear minimum target to the downside of 1800 as our first level and 1700 as our final target to complete the larger correction.

Key News, out this week: Tuesday 17th May Core Retail Sales m/m; Retail Sales m/m; Fed Chair Powell Speaks.

Res: 1855; 1900; 1945

Sup: 1800; 1750; 1700

None of the material published constitutes a trading recommendation of any particular security, portfolio of securities or investment strategy. This should not be taken as personal advice concerning nature, potential, value or suitability of any particular security, portfolio of securities, investment strategy or other matter. Past performance does not guarantee future results.

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