XAUUSD is showing two directions bullish and bearish. Both directions are valid as they do not violate Elliott Wave Theory rules/guidelines.
Bullish scenario
We are done moving in the downside direction. As a flat correction on a bigger timeframe or higher timeframe. And what we are seeing now is a series of ones to the upside. If you look at the 1 to 4-hour timeframe analysis we have 1-2-3 sequences and waiting for a 4 before executing the long idea. To go long for the long term we might want to wait for a deeper pullback for 2wave 2 before buying.
Bearish scenario
The downside is not yet over we have to complete the fifth wave phase at the 1.618 Fibonacci level for the extended wave 5. To trade this situation you enter at the current price and use the marked purple level as the invalidation level. It's a risky bet but it can pay off. If can consider both directions and still come out a winner but we have to micro-manage to see the price reach a certain level and let it run.
Bullish scenario
We are done moving in the downside direction. As a flat correction on a bigger timeframe or higher timeframe. And what we are seeing now is a series of ones to the upside. If you look at the 1 to 4-hour timeframe analysis we have 1-2-3 sequences and waiting for a 4 before executing the long idea. To go long for the long term we might want to wait for a deeper pullback for 2wave 2 before buying.
Bearish scenario
The downside is not yet over we have to complete the fifth wave phase at the 1.618 Fibonacci level for the extended wave 5. To trade this situation you enter at the current price and use the marked purple level as the invalidation level. It's a risky bet but it can pay off. If can consider both directions and still come out a winner but we have to micro-manage to see the price reach a certain level and let it run.
