XAUUSD: Elliott wave analysis and forecast for 10.02.23 – 17.02.23

The Elliott Wave theory is a form of technical analysis that looks for recurrent long-term price patterns related to persistent changes in investor sentiment and psychology. The theory identifies impulse waves that set up a pattern and corrective waves that oppose the larger trend.

Let's look at Elliott Theory for the pair of XAUUSD

Main scenario: consider short positions from corrections below the level of 1962.00 with a target of 1788.55 – 1747.55.

Alternative scenario: breakout and consolidation above the level of 1962.00 will allow the pair to continue rising to the levels of 2050.00 – 2200.00.

Analysis: a descending correction appears to have formed as the fourth wave (4) of larger degree on the daily chart, with wave С of (4) completed and the fifth wave (5) unfolding inside. Apparently, the first wave of smaller degree 1 of (5) is formed on the H4 chart, and a local correction is developing as the second wave 2 of (5). On the H1 chart, apparently, wave a of 2 is formed, and wave b of 2 is developing at the moment. Once it's completed, the pair will continue to fall to the levels of 1788.55 – 1747.55 if the presumption is correct. The level of 1962.00 is critical in this scenario as a breakout will enable the pair to continue growing to the levels of 2050.00 – 2200.00.

Kindly note that the analysis provided above are just ones opinion and thoughts about the markets, which might not necessarily be accurate. Therefore it shouldn't considered as financial investment advice.