XAUUSD - Approaching Critical Junction: The Final Leg of Wave B?
Analysis Overview:
In recent weeks, XAUUSD has been caught in a sideways consolidation, leaving traders pondering its next major move. However, a recent uptick in price action hints at a significant development. The question now is whether this surge represents the final leg of our Wave B or if the momentum will carry the price further up, potentially breaking past previous highs. In this analysis, we explore the scenario where this uptick marks the culmination of Wave B.
Scenario Confirmation:
The key level to watch is the 2040 mark. A drop below this price would serve as a confirmation of our hypothesis, signaling the commencement of Wave C. This development would likely drive prices down towards the 1970-1960 range as part of the corrective sequence. Should the descent extend beyond our initial expectations, a further slide to the 1920 level could be on the cards, marking a more profound correction.
Invalidation Criteria:
This scenario hinges on the price remaining within the current channel. A bullish breakout, characterized by a closure above the channel's resistance, would invalidate our analysis. Such a move would necessitate a reevaluation of the market dynamics, directing attention to an alternative bullish scenario outlined in the related Ideas.
Disclaimer:
This analysis is provided as a general market commentary and does not constitute investment advice. Traders should conduct their own research and consult with a professional advisor before making any trading decisions.
In recent weeks, XAUUSD has been caught in a sideways consolidation, leaving traders pondering its next major move. However, a recent uptick in price action hints at a significant development. The question now is whether this surge represents the final leg of our Wave B or if the momentum will carry the price further up, potentially breaking past previous highs. In this analysis, we explore the scenario where this uptick marks the culmination of Wave B.
Scenario Confirmation:
The key level to watch is the 2040 mark. A drop below this price would serve as a confirmation of our hypothesis, signaling the commencement of Wave C. This development would likely drive prices down towards the 1970-1960 range as part of the corrective sequence. Should the descent extend beyond our initial expectations, a further slide to the 1920 level could be on the cards, marking a more profound correction.
Invalidation Criteria:
This scenario hinges on the price remaining within the current channel. A bullish breakout, characterized by a closure above the channel's resistance, would invalidate our analysis. Such a move would necessitate a reevaluation of the market dynamics, directing attention to an alternative bullish scenario outlined in the related Ideas.
Disclaimer:
This analysis is provided as a general market commentary and does not constitute investment advice. Traders should conduct their own research and consult with a professional advisor before making any trading decisions.
Order cancelled:
Not valid check scenario 2
