XAU/USD: Wave analysis and forecast for 26/10/2018 – 02/11/2018

The XAU/USD pair is under correction, still likely to grow. Estimated pivot point is at a level of 1219.57.

Main scenario: long positions will be relevant above the level of 1219.57 with a target of 1250.00 – 1263.50.

Alternative scenario: Breakout and consolidation below the level of 1219.57 will allow the pair to continue declining to the levels of 1182.23 – 1159.50.

Analysis: Supposedly, a downward impetus 1 finished developing within the wave (C) of senior level on the daily time frame. An upward correction is developing on H4 time frame in the form of the wave 2 of (C), with the wave (c) of 2 forming inside. Presumably the local correction (iv) of c finished forming on the H1 time frame and the wave (v) of c is developing at the moment. If the presumption is correct, the price will continue to rise to the levels of 1250.00 – 1263.50. The level 1219.57 is critical in this scenario.