In this technical analysis, we will discuss the recent performance of XAUUSD based on 1-hour Elliott Wave Charts. The price action has shown a rebound from a key support zone, indicating a potential opportunity for traders.
Looking back at the chart from the 10th of August 2024, we can see that the rally to a high of $2685.58 marked the end of wave 3, followed by a pullback in wave 4. The pullback unfolded in an Elliott wave double three structure, with wave ((w)) ending at a low of $2624.54. This was followed by a bounce to $2673.14, which ended wave ((x)), leading to the next leg lower in wave ((y)) towards the $2611.86-$2573.73 equal legs area. Buyers were expected to step in at this level, looking for new highs or a minimum 3-wave bounce.
Moving on to the latest chart from the 14th of October 2024, we can see a strong reaction higher from the equal legs area, indicating a potential bullish momentum. Members were advised to take a long position shortly after the double correction, creating a risk-free position. However, a break above the $2685.58 high is still needed to confirm the next leg higher towards the $2705.22-$2737.27 area and avoid a potential double correction lower.
ElliottWave-Forecast, a reputable source for technical analysis, combines Elliott Wave Theory with Market Correlation, Cycles, and a Proprietary Pivot System to provide accurate forecasts for various instruments including Forex majors, Commodities, and Equity Indices. Clients have access to actionable trade setups, market overviews, wave counts on different timeframes, webinars, technical videos, educational resources, and a 24-hour chat room for live updates and answers to their questions.
Overall, the XAUUSD price action analysis suggests a potential bullish outlook following the rebound from the key support zone. Traders are advised to monitor the price levels mentioned and look for confirmation signals to capitalize on the potential upward momentum in the market.
