04.05.202112:57 Forex Analysis & Reviews: Wave analysis for XAU/USD on May 4, 2021

XAU/USD, D1 time frame:

Looking at the daily time frame for gold, we see a large bullish trend that has been developing since mid-2018. A characteristic feature of this trend is the fact that the further it is formed, the deeper corrections we observe.

For example, a deep and long correction wave (4) was seen during the previous trading months, which took a triple zigzag W-X-Y-Z form. Since this wave looks fully done and equipped with sub-waves of a smaller wave level, we can assume that the final bullish impulse (5) is now developing, in which the price will rise above the level of 2075.00, i.e. above the level of the previous low that it formed (3).

Let's take a closer look at the chart in a smaller time frame.

XAU/USD H4 time frame:

As for the four-hour time frame, we see that after the correction wave (4) is completed, the market began to form the first impulses of the bullish trend (5) indicated on the daily time frame.

Waves 1-2 and waves of a lower wave level [1]-[2] were formed. If the hypothesis is correct, we will now really see the beginning of a new bullish trend. After that, it can be assumed that the development of the impulse has already begun [3].

The market is expected to grow above the highest part of the triangle [B] within the framework of wave [3], which is shown in the graph in the center, i.e. above the level of 1876.00. Thus, it is currently possible to open long positions.