Elliott Wave Gold Analysis: The Wave C Ending Diagonal Pattern

Gold is completing an ending diagonal within a rising wedge the classic exhaustion pattern that precedes Wave 3 of C decline. This Elliott Wave DXY Gold GBPJPY analysis examines Gold’s bearish setup that aligns perfectly with the bullish DXY thesis from our three-market study. study.

Key Setup Elements:

• Exhaustion Zone: 4,294–4,296 (0.765 Fibonacci retracement)
• Confirmation Trigger: Spike into resistance, then fail + break of prior support
• Wave 3 Target: 3,600–3,200 (where largest moves occur)
• Momentum Signal: Price higher highs with diverging momentum = reversal setup

This Elliott Wave Gold bearish setup confirms the three-market USD strength thesis:

• DXY bullish (Wave 5 launch) = USD strength
• Gold bearish (Wave 3 decline) = Inverse correlation
• GBPJPY bearish (Triangle breakdown) = Carry unwind

Elliott Wave Gold is set for a significant Wave 3 decline once the ending diagonal exhausts at 4,294–4,296. Watch for spike-and-rejection confirmation, then trade the 5-wave rollover toward 3,600–3,200.

Key Takeaway

Elliott Wave DXY Gold GBPJPY correlation is confirmed Elliott Wave Gold is set for a significant Wave 3 decline once the ending diagonal exhausts at 4,294 – 4,296. This Elliott Wave analysis of Gold supports the broader USD strength thesis. Watch for the spike-and-rejection confirmation, then trade the 5-wave rollover through support toward 3,600–3,280.

Part of Our 3-Market Elliott Wave Analysis

This Elliott Wave Gold analysis is Part 2 of our comprehensive three-market study. Read the complete breakdown:

👉 5 Elliott Wave DXY Gold GBPJPY Analysis: 3 Proven High-Probability Technical Setups

Part 1: Elliott Wave DXY bullish Wave 5 setup
Part 2: Elliott Wave Gold ending diagonal (you are here)
Part 3: Elliott Wave GBPJPY triangle breakdown

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