XAU/USD – Elliott Wave Update | Wave (2) in Progress)OANDA:XAUUSD
🔍 Wave Structure Overview
We’re currently in a
Prior impulse (likely 1-2-3-4-5) completed, forming (Circle) wave ①
Current correction unfolding as (A)-(B)-(C) in yellow
↳ Presently in wave (A) or transitioning into (B)
↳ Within (B), structure is forming as A-B-C
↳ Currently tracking 5-wave move from 4 to 5
📐 Fibonacci & Key Levels
Watching 61.8% retracement as a critical support zone ✅
This level also marks a high-probability TP area for short positions
Strong confluence:
🔹 Fibonacci retracement
🔹 Extension alignment (e.g. yellow fib extension to ~4403)
🔹 Trendline reaction expected
🧠 Trade Setup (Scenario-Based)
🔸 Scenario A – Early Entry:
Enter small long near 61.8% Fib zone
SL: Below last swing low
TP: To be refined once C-wave completes
🔸 Scenario B – Confirmation Entry:
Wait for break above red trendline
Add position
SL below Fib zone low
TP around Fibonacci extension / structure resistance (~4403)
⚠️ Key Considerations
Many positions will close in this zone → increase in selling pressure
Possible reversal zone → watch for confirmation (impulse or ABC)
Once wave (C) completes, we’ll likely see entry into a larger bearish move
📎 Conclusion
This is a high-probability reversal zone, supported by Elliott structure and Fib levels. I’m planning to scale in based on price action and confirmation.
📈 Stay flexible, manage risk, and watch the structure evolve.
