XAU/USD: wave analysis 29 January 2021, 10:53

XAU/USD: wave analysis

29 January 2021, 10:53

Scenario
Timeframe	Weekly
Recommendation	BUY
Entry Point	1846.00
Take Profit	2000.00, 2075.45
Stop Loss	1811.49
Key Levels	1728.61, 1763.78, 1811.49, 2000.00, 2075.45

Alternative scenario
Recommendation	SELL STOP
Entry Point	1811.45
Take Profit	1763.78, 1728.61
Stop Loss	1827.35
Key Levels	1728.61, 1763.78, 1811.49, 2000.00, 2075.45

The pair may grow.

On the daily chart, the third wave of the higher level (3) formed, a downward correction developed as the wave (4), and the wave (5) forms. Now, the first entry wave of the lower level 1 of (5) has formed, a local correction has developed as the wave 2 of (5), and the formation of the wave 3 of (5) is starting. If the assumption is correct, the pair will grow to the levels of 2000.00–2075.45. In this scenario, critical stop loss level is 1811.49.

Main scenario

Long positions will become relevant during the correction, above the level of 1811.49 with the targets at 2000.00–2075.45. Implementation period: 7 days and more.

Alternative scenario

The breakdown and the consolidation of the price below the level of 1811.49 will let the pair go down to the levels of 1763.78–1728.61.