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

On the daily chart, the fifth wave of the higher level (5) of 3 develops, within which the wave 1 of (5) formed, a downward correction ended as the second wave 2 of (5), and the third wave 3 of (5) forms. Now, the third wave of the lower level iii of 3 has ended, and a local correction is developing as the fourth wave iv of 3, within which the wave (b) of iv is forming. If the assumption is correct, the XAU/USD pair will fall to the area of 2272.78–2219.07. In this scenario, critical stop loss level is 2449.20.

Main scenario

Short positions will become relevant below the level of 2449.20 with the targets at 2272.78–2219.07. Implementation period: 7 days and more.

Alternative scenario

A breakout and the consolidation of the price above the level of 2449.20 will let the asset grow to the area of 2560.00–2650.00.