The price is in a correction, a fall is possible.

On the weekly chart, the fifth wave of the higher level 5 develops, within which the wave (5) of 5 forms. On the daily chart, the third wave of the lower level 3 of (5) has ended, and a correction is forming as the fourth wave 4 of (5), within which the wave a of 4 has ended. If the assumption is correct, after the wave b of 4, the XAU/USD pair will fall to the area of 2416.00–2300.50. In this scenario, critical stop loss level is 2792.85.

Main scenario

Short positions will become relevant below the level of 2792.85 with the targets at 2416.00–2300.50. Implementation period: 7 days and more.

Alternative scenario

A breakout and the consolidation of the price above the level of 2792.85 will let the asset grow to the area of 2950.00–3100.00.