XAU had attempted to break above the weekly resistant but it has been failed for 3 times. I would believe that all of this price action is telling that it might be false breakout. If you look at the daily chart, gold could not close above 1800 area.
As I always mentioned, corrective wave can be very long and complex and might happen double corrective waves or triple corrective waves. What we see now is a double correction ABC.
A strong break down on the daily support again tells that the bearish outlook is still intact. Gold retrace by approximately 30% before closing the daily candle. Thus, I strongly believes that the submicro wave 3 will be unfolded in a minuscule impulsive waves. In terms of minuscule wave, gold might attempt to reach 50% or 61.8% level before continuing the bearish trend. Those levels are also the previous daily support line. It can be a good retest.
This is not trading advice and is just my opinion on the market.
As I always mentioned, corrective wave can be very long and complex and might happen double corrective waves or triple corrective waves. What we see now is a double correction ABC.
A strong break down on the daily support again tells that the bearish outlook is still intact. Gold retrace by approximately 30% before closing the daily candle. Thus, I strongly believes that the submicro wave 3 will be unfolded in a minuscule impulsive waves. In terms of minuscule wave, gold might attempt to reach 50% or 61.8% level before continuing the bearish trend. Those levels are also the previous daily support line. It can be a good retest.
This is not trading advice and is just my opinion on the market.