XAU/USD: wave analysis 19 February 2021, 08:42

XAU/USD: wave analysis

19 February 2021, 08:42

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	1770.20
Take Profit	1728.61, 1622.21
Stop Loss	1784.10
Key Levels	1622.21, 1728.61, 1855.08, 1959.38, 2075.45

Alternative scenario
Recommendation	BUY STOP
Entry Point	1855.10
Take Profit	1959.38, 2075.45
Stop Loss	1820.30
Key Levels	1622.21, 1728.61, 1855.08, 1959.38, 2075.45

The pair is in a correction, a fall is possible.

On the daily chart, the third wave of the higher level (3) formed, and a downward correction develops as the fourth wave (4). Now, the wave C of (4) is forming, within which the wave iii of C is developing. If the assumption is correct, the pair will fall to the levels of 1728.61–1622.21. In this scenario, critical stop loss level is 1855.08.

Main scenario

Short positions will become relevant during the correction, below the level of 1855.08 with the targets at 1728.61–1622.21. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1855.08 will let the price grow to the levels of 1959.38–2075.45.