Uptrend continues. XAU/USD wave analysis

Analysis for October 22^nd, 2014

In our previous review, “Uptrend instead of correction. Wave analysis of XAU/USD for 22.10.2014”, we discussed one of the possible scenarios how the uptrend may continue.



Probably, the price is about to finish a descending zigzag(ii) of [a], after which the uptrend may continue inside impulse (iii) of [a]. The critical level for this scenario is the possible ending of a descending zigzagA at 1182.69.



However, the fact that the pair completed a descending zigzagA hasn’t been confirmed yet, and the price may continue falling. At the same time, expectations of the price movement are bullish.



If this assumption is confirmed, then the predicted target of an ascending zigzagB may be at level of ~1500 (or ~1800).

However, an alternative scenario may be still in effect. It implies that the price may be still forming horizontal triangle(iv) of [c] of A. In this case, the uptrend may be completed by an ascending zigzage of (iv) near ~1300.

However, at the same time one should remember that any possible scenario is subjective and the market may move in a completely different direction.

RoboForex Analytical Department