The current XAUUSD structure suggests the development of a correction, which takes the form of a cycle triple w-x-y-x-z zigzag.
At the moment, the actionary wave y is under development, which takes the form of a bearish triple zigzag of the intermediate degree. The chart shows the final part of the specified pattern. We see an intermediate wave (Z) consisting of minor sub-waves A-B-C.
It is possible that in the near future the price will move in a minute impulse, as shown on the chart, and will complete the minor wave C near 20.34. At that level, intermediate wave (Z) will be at the 76.4% Fibonacci extension of wave (Y).
According to an alternative, the cycle wave y ended at the end of September, then the price began to rise within the bullish intervening wave x.
Judging by the internal structure, wave x takes the form of a primary double zigzag Ⓦ-Ⓧ-Ⓨ. It seems that the sub-waves Ⓦ-Ⓧ have already ended, taking the form of double zigzags.
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Thus, it is currently possible for the price to rise in the primary wave Ⓨ towards the 26.76 area. At that level, wave x will be at 61.8% of wave y.
After reaching this price point, gold prices could fall below the level of 21.42.
Article by Orbex
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