XAU/USD: wave analysis 26 March 2021, 08:53

XAU/USD: wave analysis

26 March 2021, 08:53

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	1728.76
Take Profit	1622.21, 1516.65
Stop Loss	1757.61
Key Levels	1516.65, 1622.21, 1757.61, 1877.85, 1959.38

Alternative scenario
Recommendation	BUY STOP
Entry Point	1757.65
Take Profit	1877.85, 1959.38
Stop Loss	1717.55
Key Levels	1516.65, 1622.21, 1757.61, 1877.85, 1959.38

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 has formed, and a local correction has ended as the wave iv of C. If the assumption is correct, the pair will fall to the levels of 1622.21–1516.65. In this scenario, critical stop loss level is 1757.61.

Main scenario

Short positions will become relevant during the correction, below the level of 1757.61 with the targets at 1622.21–1516.65. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1757.61 will let the price grow to the levels of 1877.85–1959.38.