Gold started bearish yesterday after a strong dollar. Will price continue downside? The following 27 July Gold Elliott wave analysis looks at XAUUSD forecast based on Elliott wave theory.
Gold ended this week bullish push yesterday. Price is now crossing below the 1220 mark. It seems it would break below last week low – 1211. In the last update, we expected the rally to 1242 at least before the idea of bearish take-over. Price was fiercely resisted at 1235 by the bears as the bulls ran out of momentum. What should we expect next? The following chart was used in the last update.
If the breakout is rejected heavily at 1242 short term reversal zone, we might see price dropping from there to make lower prices. If the rally breaks significantly above 1242, we might see price at 1290 as it completes the first leg of wave 4 (in green). Stay tuned for the next update.
27 July Gold Elliott wave analysis: what next?
The chart above shows the impulse wave since the beginning of the year and shows that the rally we looked at is part of the 3rd wave. Wave i of (iii) may be extended. Wave v of (iii) could end at 1200 before wave (iv) rally. We will still see more pullbacks but the bearish trend is still much intact and strong. If price moves like the forecast above shows, we might see it at 1150 before the big bullish correction. Future updates will look more at the intraday waves. Stay tuned for the next update.
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