XAUUSD May 20, 2024 What is the target of this price increase?Hello everyone, DEEKOP is ready to bring the most accurate signals and assessments to everyone.
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Last week, the Russian president's visit to China will have two purposes: first, Russia and China create cooperation, which will make Russia's war in Ukraine continue to take place according to Russia's plan after the With China's support, the war in the Middle East and the factions supported by these two countries will gain more momentum. Second, these two countries are key members of the BRICS bloc. This visit will create momentum for the bloc to continue buying Gold to strengthen the bloc's common currency that is about to be released.
In addition, with last week's announcement of US economic indicators, we see a decrease in the number of applications for unemployment benefits in the context of a continuous decline in the labor market, and at the same time the CPI index is at a high level. This shows that the American people are gradually adapting to the current economic situation, which will create confidence for the Fed to at least keep interest rates high to restrain inflation.
So we see that the current volatile world situation is having a stronger impact on gold prices than the US economic index.
Looking at the H1 graph based on the Elliot wave principle, we see
- The price is at the end of wave 5. After measuring the target forecast for the end of wave 5, we have potential target areas that are 2444 and 2460.
- After wave 5 ends, we expect an ABC correction before continuing the uptrend
- The corrective wave target is expected to launch from the peaks of wave 5. We have 2 expected targets: area 2400 and area 2380. But according to the Elliot wave principle, corrective waves are often very complicated and take a long time.
Trading plan
In the Sell plan, we align the important price zones at 2444 and 2460
In our Buy plan, we watch the important price zones at 2400 and 2380
Scalping strategies are applied when the upper resistance - support area provides an entry signal.
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.
