XAU/USD: Wave analysis and forecast for 10/08/2018 – 17/08/2018

Descending trend for the pair XAU/USD continues. Estimated pivot point is at a level of 1236.11.

Main scenario: short positions will be relevant from corrections below the level of 1236.11 with a target of 1170.58 – 1140.70.

Alternative scenario: breakout and consolidation above the level of 1236.11 will allow the pair to continue rising to a level of 1266.50.

Analysis: Supposedly, an ascending wave of senior level C of (В) finished developing within the daily time frame and the wave (C) started forming. A downward impetus is developing as the third wave iii inside the wave 1 of (C) on the 4-hour timeframe. Supposedly, the third wave of junior level (iii) of iii is nearing completion on the 1H time frame. If the presumption is correct, the price will continue to drop to the levels 1170.58 – 1140.70 after a local correction (iv) of iii. The level 1236.11 is critical in this scenario.