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Waveananlysis

XAUUSD Getting Ready for Take OffXAUUSD has been consolidating and bouncing around in a falling wedge pattern aka bull flag since it made a 2019 high in the beginning of September. In this analysis we have 2 scenarios which could play out. First one, from a purely technical perspective, we have a cluster of Fibonacci levels right at the psychological $1450 level. Price could potential come down to this strong support before launching toward $1600. The fib cluster consist of a 38.2% retrace of the entire swing low to swing high, 50% from the June 11 low, 61.8% from the July 1 low, -61.8 from the abc correction, and a -27% from the most recent 61.8% retrace. The second scenario would be a clean break and close above the rising wedge in which price would head straight for our ultimate target of $1600. Either scenario has equal probability of occurring. I will note I would definitely NOT look to short gold as it is in a strong bull market and highly driven by fundamentals. If price breaks to the upside with a strong bullish engulfing candle stick we can look for a long. If price dips down to the fib cluster that will just give us an even better entry for our long. Keep in mind the FOMC federal funds rate decision and press conference is Wednesday October 30th 2-2:30pm EST. This will most likely be the catalyst to either immediately push prices higher OR push them lower to our fib cluster for the long. Will update in either case. This is for educational purposes only. This is in no way intended to be financial advice. I am not a financial advisor.
FX:XAUUSDLong
by csohrab
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