XAU/USD: wave analysis and forecast for 20/07/2018 – 27/07/2018

Descending trend for the XAU/USD price continues. Estimated pivot point is at a level of 1265.91.

Main scenario: short positions will be relevant from the corrections below the level of  1265.91 with a target of 1200.00 – 1170.58.

Alternative scenario: breakout and consolidation above the level of 1265.91 will allow the pair to continue rising to a level 1310.14.

Analysis: Supposedly, an ascending wave of senior level C of (В) finished developing in the daily timeframe and the wave (C) started forming. A downward momentum is developing as the third wave iii inside the wave 1 of (C) in the 4-hour timeframe. In the 1-hour timeframe,  the fifth wave (v) of iii is supposedly finishing its developing. If the presumption is correct, the price will continue falling down to the range of  1200.00 – 1170.58. The level 1265.91 is critical in this scenario.