XAU/USD: We are waiting for the completion of the first part of the bullish zigzag
In the medium term, gold is expected to form a double zigzag, which consists of three main sub-waves inside the cycle wave z.
-638155843366066024.png)
Apparently, the first two sub-waves have already been formed, and the third sub-wave is currently under development.
Wave may take a standard zigzag structure. At the moment, its first part is being built the sub-wave (A), similar to the impulse 1-2-3-4-5. In the near future, market participants may observe the completion of the minor correction 4, after which the price may rise to the maximum of 2011.28 in minor wave 5.
In the second variant, we consider a scenario where the intermediate impulse wave (A) is fully completed, its fifth wave is a truncated impulse.
Thus, in the next coming trading days, market participants may expect a price decline and the development of an intermediate correction (B). There is a high probability that this correction will take the form of a standard zigzag A-B-C, as shown on the chart.
The end of the wave (B) can be expected closer to 1881.76. At that level, it will be at 61.8% of impulse (A).
Author
Jing Ren
Orbex
Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.
