XAUUSD: At a crucial moment
XAUUSD continues to stay below its highs around $1557 since our last update. This top may potentially be a wave C high as per our count in the last update. The follow-up action has been sluggish and can potentially be a topping out process.
If $1557 is a wave C high then XAUUSD should not break above $1536 level. We should instead see a swift down move in the coming week. The price action so far in october may be a minor a-b-c correction with wave a high being at 1519.63. As part of wave c we have seen prices go up as high as 1518.04. The wave c may still try to go above the wave a high of 1519.63, but as already mentioned it shouldn't cross the crucial $1536 level as that would mean we are probably headed above $1557.
In case wave c doesn't briefly trade above the minute wave a high of $1519.63 before turning, the selloff can be extremely strong as a truncated wave c often results in very sharp move when the previous trend resumes.
If $1557 is a wave C high then XAUUSD should not break above $1536 level. We should instead see a swift down move in the coming week. The price action so far in october may be a minor a-b-c correction with wave a high being at 1519.63. As part of wave c we have seen prices go up as high as 1518.04. The wave c may still try to go above the wave a high of 1519.63, but as already mentioned it shouldn't cross the crucial $1536 level as that would mean we are probably headed above $1557.
In case wave c doesn't briefly trade above the minute wave a high of $1519.63 before turning, the selloff can be extremely strong as a truncated wave c often results in very sharp move when the previous trend resumes.
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