Wave 4 has played perfectly within channel, now that price has touched the lower trendline, it is a sign that wave 5 is set to take off.
In H4, we have a visible ending diagonal that supports the reversal idea. Let us look to buy Gold from that low and hold.
Important to note that the market can be choppy just when we the reversal is starting to take off.
In a while, we will see a reversal for the upside as wave 1 for major wave 5. This will be our opportunity to resume buying up to our long term target of 1.2900.
Buying now will be risky buy if the H1 bullish flag breaks above, we can BUY and Hold.
This pair has rallied up for the past few months without a significant pullback (correction). We now anticipate that the market will correct the entire move or the previous recent impulse, either way we should not be looking to buy yet. Shorting will also carry a significant risk.
This pair has been playing within a channel since 2017. it is set to touch the upper trend line soon which corresponds to two major zones:
1. Supply Zone, as shown on the left side of the chart
2. Fibonacci Level (FE 1.000). This level is crucial as it gives the projection for wave C in a case where A=C.
#Xauusd seems to have turned bullish from yesterday. Our next key fib level is 78.6% which corresponds to 1733.
Since we are now trading wave 5, it is expected to be an heavy impulse that may be equal to wave 1 in length.
After hitting 61.8% fib, Gold has retraced and is now headed down. it is important to note that the larger view is a correction.
Entries to the upside are based on a breakout of the correction that touched 61.8% fib. Target at the possible A=C level