XAU/USD: Wave analysis and forecast for 01/02/2019 – 08/02/2019

Correction for the pair XAU/USD takes longer than expected. Estimated pivot point is at a level of 1367.00.

Main scenario: short positions will be relevant below the level of 1367.00 with a target of 1159.50 – 1097.76.

Alternative scenario: breakdown and consolidation above the level of 1367.00 will allow the pair to continue the rise up to the levels of  1400.00 – 1450.00 and higher.

Analysis: Supposedly, the wave of senior level (C) continues developing on the daily time frame, with the wave 1 of (C) formed inside. On the H4 time-frame, apparently, an upward correction is nearing completion in the form of the wave 2 of (C), with the wave  c of 2 almost formed inside. Supposedly, the fifth wave of junior level  (v) of c of 2 is nearing completion on the H1 time frame. If the presumption is correct, the price will logically drop to the levels of 1159.50 – 1097.76 in the long term. The level 1367.00 is critical in this scenario.