XAUUSD week 2 June 2024 where will the decline come?

٩ يونيو

Last week, China announced that it would stop buying Gold in May, making investors worried, leading to a sharp drop last Friday. In addition, the published Nonfarm news also showed that the change in US employment rate increased sharply from 165k to 275k. These are the things that caused Gold to have a sharp decline on Friday

Looking at D1, we see that the sharp drop in price on Friday completely negated the increase last week.
- This also confirms that wave 5 has not yet started when the price breaks below the 2318 zone
- So the wave 4 correction model now becomes a Flat model with the top of wave b equal to the bottom of wave a.
- From the measurement, we can measure the target of wave c in wave abc or wave 4, there will be 2 targets: area 2260 and area 2205.
- This correction process, the abc process in wave 4, is confirmed to be completed when the price breaks through 2452
- This correction is negated (i.e. our current wave counting model is no longer valid) when the price breaks below 2145.
- Looking at the current momentum indicator, it is preparing to reverse and decrease so in the short term, the price will continue to decline, so we should limit bottom fishing at the current price range.

Our trading plan is to observe two target zones, the 2260 zone and the 2205 zone, to find a buy signal.