(Click on image to enlarge)

A large correction pattern is currently forming on XAUUSD, forming a cycle triple zigzag.

The 1H timeframe shows the structure of the completed cycle intervening wave x. This looks like a bearish triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.

There is a possibility that the cycle wave z takes the form of a primary double zigzag Ⓦ-Ⓧ-Ⓨ.

It is assumed that the primary double zigzag could end near 1802.65. At that level, wave Ⓨ will be at 161.8% of wave Ⓦ.

(Click on image to enlarge)

However, there is a possibility that the downward movement of the pair will continue in the cycle wave x. The final primary wave is under development.

Thus, a downward movement of XAUUSD is likely in the near future. The primary wave Ⓩ could take the form of an intermediate zigzag (A)-(B)-(C).

The final correction pattern zigzag (A)-(B)-(C) is possible near 1563.07. At that level, primary wave Ⓩ will be at 76.4% of primary wave Ⓨ.

Only after reaching the specified level, the development of the cycle wave z will begin.

More By This Author:

US Consumer Sentiment And Election Follow-Up
SPX500 Bullish Impulse To Test 5K
Intraday Market Analysis – XAU Awaits Catalyst