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
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