Horizontal correction again. XAU/USD wave analysis

Analysis for August 20^th, 2014

In our previous review, “The final straight. Wave analysis of XAU/USD for 15.08.2014”, we discussed a possible scenario how the price may complete an ascending zigzage of (iv).



Our mid-term expectations haven’t changed much - after finishing a horizontal triangle (iv) of [c] of A, the price is expected to fall lower than level of 1200 inside the final wave (v) of [c] of A.

However, the completion of this triangle, (iv) of [c], is a bit delayed because a horizontal correction [B] of e of (iv) (of the final ascending zigzage of (iv)) turns out to be longer than expected.



Possibly, a descending correction [B] of e of (iv) is taking the form of a horizontal running triangle. At that, the uptrend is still dominating and offering good entry points to open long positions. However, the start of the final ascending wave [C] of e of (iv) is pushed a bit back.

Considering such ratio between the main waves of zigzage of (iv), the pair may well reach the previous predicated target at ~1375.



Probably, the market is finishing a descending zigzag(C) of [B]. In order to complete a possible triangle[B] of e, the price needs a couple of zigzags, an ascending (D) of [B] and a descending (E) of [B].

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