By Orbex
The XAUUSD structure hints at a triple zigzag in the intermediate correction wave (4). It consists of minor sub-waves W-X-Y-X-Z.
With the second wave X having completed fully we expect minor wave Z to send prices lower. A closer look at the bearish structure suggests a double zigzag. This requires the development of actionary wave ⓨ.
If wave ⓨ takes the form of a double combination, it could end near 1636.55. At that level, waves Y and Z will be equal.
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If, however, the intermediate correction in wave (4) has fully completed, then the probability of seeing gold moving higher will increase.
To confirm this alternative, a bullish 5th wave is necessary. Most likely, it will take the form of an impulse, but it could also be an ending diagonal.
In either case, the prices of gold might ascend significantly above $1917.03 as this is where the minor intervening wave X registered a high.
Article by Orbex
Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com
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