Gold (XAU/USD) seemed to be starting a bigger downtrend but the impulsive bullish price action is placing the bearish reversal in doubt. Price is now approaching a key decision zone.
XAU/USD respected the 78.6% Fibonacci retracement level of wave 2 vs 1 (orange) but will it be able to break below the support line (blue)? A bearish breakout could start a new bearish impulse but a break above the 100% Fibonacci level indicate a larger bullish correction.
XAU/USD seems to have completed a wave 4 (blue) correction but a bullish breakout could indicate an expanded 4th wave. A bearish break below the support line (blue) of the uptrend channel could indicate the start of wave 5 (blue).