the XAU/USD (Gold) is building a bearish correction within a larger uptrend. A breakout could confirm (green check) the continuation towards the Fibonacci targets.
The XAU/USD is either building a wave 2 (blue) pullback or price is in a larger and more complex wave 4 (purple) correction. The bullish outlook remains valid as long as price stays above the 50% Fibonacci level of wave 4 vs 3 (red x).
A breakout above the resistance trend line (red) is the first signal of a larger uptrend continuation. A pullback is expected to retest the 21 ema zone before a next breakout above the larger resistance (red) would confirm (green check) a potential impulsive swing.
The analysis has been done with SWAT method (simple wave analysis and trading).
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