Gold is dropping to the lower part of 1300s. This drop is seen across all USD pairs. How far do we expect the dip to go? The following 27 March Gold Elliott wave analysis looks at XAUUSD short term Forecast based on Elliott wave analysis.
27 March, AtoZForex -Since the the start of the London session today, USD pairs have been moving swiftly as USD rallied. Gold dropped just below 1358 after completing an impulsive wave rally. I had earlier, in the last update, stated that Gold should make a 3-wave dip before the next rally starts. It’s important to know that the long term bullish correction is still intact. For many months, the long term bullish correction persists amid some bearish setbacks. The last set of bearish setback ended at 1305 with a flat pattern and a swift impulsive rally followed.
In the last update, we I used the chart below to explain my speculation.
The long term bias is bullish as price is expected to complete a long term correction upside. The chart above shows price completing an impulse wave after the breakout of a Flat pattern which ended with an ending diagonal at 1306. A 3-wave correction could happen at the end of which we’d likely see Gold rallying further to break above 1351, 1361 and other tops that lead to 1484-1587 reversal zone.
I think the best swing/long term trade idea is to wait for the bearish move from the current top -1358- to complete before looking for bullish clues. The chart below shows the updated wave analysis.
27 March Gold Elliott wave analysis: what next?
The bearish target was set at 1324. Price is already showing the momentum to believe this will most likely happen. Short term sellers can take advantage by selling the next intraday pullback and ride to 1324 target level. Long term/swing traders can wait for the intraday bearish correction to end before looking for bullish clues. The long term bias is still pointing upside (unless the current drop extends below 1306 support) despite the current drops. Stay tuned for the next update.
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