Completion of descending zigzag. XAU/USD wave analysis.

Analysis for July 21^st, 2014

In our previous review, “Inside of descending correction. Wave analysis of XAU/USD for 15.07.2014”, we discussed one of the possible scenarios how the price may form descending correction [B] of e of (iv).



Probably, inside ascending zigzage of (iv), the price is forming local descending correction [B] of e of (iv) towards support level at ~1275. Possibly, this correction may take the form of zigzag, and right now, the pair started forming its second “leg” (C) of [B] of e of (iv).



At H1 chart, the price is probably completing local ascending correction 2 of (C) of [B] and later may continue forming this final wave (C) of [B] towards level of ~1275.

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