XAUUSD May 27, 2024 gold's reaction after a sharp decline

With investors' expectations of interest rate cuts in the market increasingly decreasing, especially when statements from Fed members last week all hinted that there will be no plans to cut interest rates in the near future. This interest rate causes the expectation to buy gold to decrease, leading to a weak demand for accessing the market.

Looking at H1 last weekend, we witnessed a strong decline according to the Elliot wave principle. This strong decline may be a characteristic of wave 3 of wave c in the abc correction wave as shown on the chart.
- Currently the price is in a recovery phase and this could be wave 4. We measure the target of wave 4 ending at the price range 2351-2355
- Then the price continues to decrease to complete wave 5 as well as wave c, then we have the target price area of this wave 5 at 2322.7 or 2311.5

Trading plan
- We can sell at area 2351-2355 when candlestick reversal signals appear in this area.
- We can buy in 2 areas 2322.7 and 2311.5 when candlestick reversal signals appear in this area

Note: Sufficient TP, SL to be safe and win the market‼ ️Change data plan will be updated later.

Deekop's analysis is only a personal opinion with a desire to share its views with the community. I'm not always right. But my analysis always reflects my meticulous evaluation of what is best for an investment.

Comment:

Today is a bank holiday so gold prices are not running strong

Comment:

Gold price has approached the target of wave 4, we look for a reversal signal in the lower time frame to sell down

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