XAUUSD, The bottom is near...

XAUUSD is currently in a correction following an impulsive move higher. The most likely bottom target is highlighted on the chart, being a Fibonacci retracement line of the impulsive move & wave A from the correction. Corrections can be messy and may be adjusted as they unfold.

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Third wave is extended, looking at 1301.94 as next possible target

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Possible impulse move from here

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Most likely, the correction will be flat and so wave B could re-test the high of (A) or even exceed it.

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We could possibly see an inverted H&S pattern play out within a FLAT (B) correction. The low of $1,301 is still a target, due to an incomplete overall correction, however not until the smaller (c) wave has hit a high. Waves 1 & 3 are equal in length, meaning we could see an extended 5th wave, which fits in with the idea of an expanded flat (B) wave (extending beyond the start of wave A).

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On a daily chart, the correction seems to be at its end (Descending Triangle). However since the FOMC meeting is around the corner, it is logical to assume volatility will occur and so wave (e) would actually be a triangle itself. If not, it may just be a flat (e) and move upwards from here. This is probably the best case scenario for Gold. (e) may overshoot/undershoot, it is normal.

Comment:

As expected, the triangle pattern has ended. We are now in an impulse wave moving higher, to be exact within a wave 3. This wave is looking like it may be extended. Higher than normal moves should be expected if this holds true.