Elliott Wave Analysis – XAUUSD 26/08/2025
1. Momentum
• D1 timeframe: Price is currently in the overbought zone. The ongoing bullish cycle has already produced 5 daily candles. Combined with the overbought condition, this suggests that upside momentum is weakening. If no strong breakout occurs within the next 1–2 days, it is likely that the market is still in a larger corrective phase on the daily chart.
• H4 timeframe: Momentum has turned bearish, with strong selling pressure emerging right after wave 2 was considered complete. This is an unusual sign and raises caution for the bullish scenario.
• H1 timeframe: Momentum is also about to turn bearish, which implies an incoming corrective pullback. This is not an encouraging signal at a stage where wave 3 is expected to develop.
2. Wave Structure
• D1: The main scenario still follows the larger corrective triangle. Price is unfolding waves 1–2 (green), and the current bullish leg is expected to be wave 3 (green). However, the strength so far has not been convincing. Having already completed 5 D1 candles without a decisive breakout suggests weakness in the rally.
• H4: The Asian session opened with a strong rally, but this momentum quickly faded and was followed by aggressive selling. Momentum reversed sharply, highlighting abnormal behavior for the expected uptrend.
• H1: At the 3387 level, strong selling pressure appeared, whereas this should have been the breakout zone for wave 3 (black) after surpassing wave 1 (black). Ideally, price should have pushed straight toward 3403 to confirm the impulsive strength of wave 3. This unusual behavior suggests that wave 1 (black) actually completed at 3387, and the market is now in wave 2 (black).
On the lower timeframe (M15), the current decline is forming an ABC structure, with the measured target for wave C at 3364 – a potential buy zone.
If price falls back to 3350 and breaks below, the 1–2–3–4–5 (yellow) count will be invalidated. In that case, the market may be unfolding a larger corrective structure, and the wave count plan will need to be updated.
3. Trading Plan
• Buy Zone: 3365 – 3363
• Stop Loss: 3349
• Take Profit 1: 3387
• Take Profit 2: 3403
⚠️ Note: The stop-loss range is relatively wide, and momentum does not fully support the bullish wave scenario yet. Traders should consider carefully before entering directly.
