What is the current status of XAUUSD on the 1-hour timeframe?

The price is currently in a corrective structure, likely representing wave 4 of a larger pattern. While it broke the upper channel resistance, the overall trend remains bearish with a potential for wave 5.

What does the Flat correction pattern consist of?

The pattern since September 29th consists of three parts: three upward waves to 4227, three downward waves to 4067, and five upward waves reaching 4217.

What signals confirm the continuation of the bearish trend?

Traders should look for a return inside the descending channel, a clear bearish leg, and a corrective pullback that stays below the previous high.

Does this analysis signal the end of the gold downtrend?

No, the recent movement is viewed as a wave 4 correction. The bearish trend is expected to continue with a wave 5 formation after this correction completes.

XAUUSD Technical Analysis: Are We Witnessing a Wave 4 Correction?

Dear traders, in this article, we examine the latest XAUUSD technical analysis on the 1-hour timeframe. Last week, we anticipated that wave 5 would conclude, leading to a temporary price correction. Our prediction materialized as gold rebounded from the October 7th low of 4067, climbing to 4217 and breaking the upper channel trendline.

Analyzing Gold’s Movement and Flat Correction Pattern

Observing price action since September 29th, these fluctuations appear to form a “Flat” correction pattern, likely representing wave 4. To better understand this structure, we can divide it into three distinct phases:

Phase 1: Three upward waves reaching the 4227 level.
Phase 2: Three downward waves dropping to the 4067 area.
Phase 3: Five upward waves peaking at 4217, slightly below the initial high.

If this analysis holds and we are indeed in wave 4, the overall bearish trend for gold remains intact. We anticipate the formation of a bearish wave 5 in the near future. For further market news updates, please visit our analysis section.

How to Confirm the Trend Direction

Currently, the gold price has retreated to 4160, resting on the upper channel line. We require specific confirmation to validate the continuation of the trend. For more trading insights and reports, keep an eye on these indicators:

A definitive return of the price inside the descending channel.
The emergence of a clear bearish wave (the first leg down).
A corrective pullback (wave 2 or B) that fails to breach the previous high.

Do not forget that the gold market remains within a bearish structure. To access daily updates, follow our primary news source. What is your take on the current Elliott Wave count? Share your thoughts in the comments section below.

Disclaimer: This content is for educational purposes only and does not constitute financial advice. Trading in the Forex market and commodities carries high risk and may not be suitable for every investor.