The XAUUSD 1H chart shows a clear Elliott Wave structure forming a bullish impulsive trend. Price appears to have completed a five-wave impulse to the upside, labeled (1) through (5), followed by the beginning of a corrective phase. Currently, the market is likely developing an ABC correction or a smaller degree wave (II) after finishing wave (I).
The strong bullish momentum from the recent lows indicates institutional buying pressure. Wave (3) was extended, showing strength, while wave (4) formed a shallow consolidation. The recent peak near wave (5) suggests a temporary top, and the projected path indicates a pullback before continuing upward toward a new high.
Entry Strategy:
Wait for price to complete the corrective move (wave II or B), ideally around a support zone or Fibonacci retracement (0.5–0.618).
Look for confirmation such as bullish engulfing candles or market structure break (BOS).
Enter BUY after confirmation of reversal from the correction.
Exit Strategy:
Target previous high (wave 5) as the first take-profit level.
Hold partial position for extended move toward projected wave (III) or next impulse.
Place Stop Loss below the correction low (below wave II).
This setup favors continuation of the uptrend, but patience during correction is key for high-probability entries.