Elliott Wave Analysis XAUUSD – November 6, 2025🔹 Momentum
D1 timeframe:
The D1 momentum is now closing in, signaling a possible transition phase with two potential outcomes:
• If today’s D1 candle closes bullish (green): momentum is likely to reverse upward, suggesting a short-term bullish correction.
• If today’s candle closes bearish (red): the downtrend may continue.
The current momentum behavior is unusual, reflecting market indecision between buyers and sellers after a strong decline. As a result, even a small impulse from either side could cause a quick momentum shift.
H4 timeframe:
Momentum on H4 is still in a downward phase but already showing early signs of closing and potential bullish reversal.
• If the current H4 candle closes bearish, the downtrend may extend.
• If it closes bullish and momentum turns upward, price could retest the 4028 zone.
H1 timeframe:
Momentum on H1 is now entering the oversold area, indicating that a reversal could occur within 1–2 more H1 candles.
If momentum turns down again from resistance, this could offer an opportunity for a short-term sell (scalp) around the nearest liquidity zone.
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🔹 Wave Structure
D1 timeframe:
As discussed in previous plans, the current structure still forms a W–X–Y correction in yellow, representing wave (4) of the larger cycle.
• The W wave has already reached the 0.382 retracement of wave (3) yellow — which often marks the typical end zone of wave 4.
• Therefore, the following X and Y waves may take longer to complete to maintain time balance within wave (4).
Meanwhile, the X wave (purple) remains relatively shallow, having retraced only about 0.236 of wave W (purple). Combined with the still-uncertain momentum discussed above, a potential rise toward the 4149 zone remains a realistic scenario.
However, if today’s D1 candle closes bearish, price could continue lower to complete wave Y (purple).
Given the current structure favors time balance rather than depth, this Y wave may unfold sideways rather than deeply downward.
At this stage, price is compressed within a narrow range, reflecting market hesitation. It’s best to wait for major catalysts such as the Nonfarm Payrolls report, which could trigger the next decisive move.
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H4 timeframe:
The current X wave is developing within a narrow range under the form of a contracting triangle (a–b–c–d–e).
A triangle can only be confirmed once all five internal legs are completed.
Once that happens, a breakout above or below the triangle boundaries will define the next direction.
👉 For now, observation should be prioritized over action.
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H1 timeframe:
Wave labeling on H1 is somewhat noisy due to overlapping three-wave structures within a tightening range.
Tentatively, the labeling shows a W–X–Y correction in green, where wave X appears to be a triangle formation.
A final small drop forming wave e could complete this triangle (wave X in green). Once it’s done, a new Y wave in green may start unfolding upward.
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🔹 Summary
At present, the market remains noisy and compressed, making it unsuitable for swing entries.
• Avoid swing positions until the structure and momentum become clearer.
• Focus only on short-term scalp setups around key liquidity zones identified earlier.
• Wait for confirmation of direction and structure before committing to larger trades.
