XAUUSD ( Elliott Wave Analysis ) Key Observations:
Primary Impulse Structure:
- The chart shows a well-defined five-wave impulse sequence, marked by numbers (1, 2, 3, 4, 5) in different degrees.
- The third wave (Wave 3) appears to be extended, a common characteristic in strong trends.
Sub-Wave Structures:
- Within the major impulse waves, smaller-degree waves are labeled in red, orange, and green, signifying the fractal nature of Elliott Waves.
- This detailed breakdown provides insights into potential micro-trends and pullbacks.
Current Market Position:
- The price is currently at the end of Wave (iii) of the larger degree, suggesting that a Wave (iv) correction may occur before a final push to complete Wave (v).
- The projected path in dashed lines anticipates a correction followed by another rally toward a higher target.
Potential Trading Implications:
- If the market follows the Elliott Wave count, traders may look for a pullback (Wave iv) as a buying opportunity before Wave v.
- Key support zones for Wave iv could be previous resistance levels or Fibonacci retracement areas.
- Confirmation of Wave v completion could signal a larger corrective phase afterward.
Conclusion:
This Elliott Wave analysis suggests the asset is in a strong uptrend with potential for further gains after a minor correction. Traders should watch for retracement levels and confirmation of the final wave structure before making trading decisions.
