XAUUSD Impulsive Elliott Wave Decline In Progress

XAUUSD (Gold) formed a secondary peak at 1593.82 on February 2, 2020 and turned lower sharply. Primary count suggests secondary peak completed wave B as a FLAT and wave C lower has started which should form part of a Zigzag Elliott wave structure down January 7, 2020 peak. A zigzag is a 5–3–5 structure in which both wave A and C are in 5 waves or 5 swings. Therefore, wave C should either unfold as an impulse or a diagonal. In the chart below, we take a look at the current short-term view of Gold.

XAUUSD Short-term Elliott Wave Analysis 2.5.2020

Chart below shows initial decline from 1593.82 peak was in 5 waves which ended at 1573.22 and completed wave (i) of ((i)) of C. Bounce to 1581.19 complete wave (ii) which was followed by some sideways consolidation and then a sharp decline which ended at 1548.90 and is proposed to have completed wave (iii). Bounce to 1556.59 is proposed to be a wave (v) and a drop to new lows. Even though it’s not shown on the chart because it’s an intra-day chart, expectations are for the new low to be wave (v) which should complete wave ((i)) of C before we get a bounce in wave ((ii)) of C to correct the decline from 1593.82 peak and continue lower in wave C provided the peak at 1593.82 remains intact during proposed wave ((ii)) bounce. As far as 1593.82 high stays in place, wave C should ideally extend lower toward 1522.05–1477.87 area. In case the bounce extends, then we should still be in wave (iv) and could see 1560.14–1564.80 area before it turns lower in proposed wave (v).