XAU/USD: Wave analysis and forecast for 24/08/2018 – 31/08/2018

Descending trend for the pair XAU/USD continues. Estimated pivot point is at a level of 1201.86.

Main scenario: short positions will be relevant from corrections below the level of 1201.86 with a target of 1140.70 – 1120.00.

Alternative scenario: breakout and consolidation above the level of 1201.86 will allow the pair to continue rising to a level of 1266.50.

Analysis: A downward impetus 1 is supposed to continue developing within the wave (C) of senior level on the daily time frame. A downward impetus is developing as the third wave iii of 1 on the 4-hour timeframe. Supposedly, the upward correction of junior level iv of (iii) finished forming on the 1H time frame. If the presumption is correct, the price will continue falling to the levels of 1140.70 – 1120.00. The level 1201.86 is critical in this scenario.