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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This BTCUSD Elliott Wave analysis uses the monthly chart to map Bitcoin as part of a multi‑year impulsive advance, with Cycle Waves 1 and 2 complete and price now deep into a powerful Cycle Wave 3. The video explores the idea that, once Cycle Wave 3 finishes, BTCUSD may transition into a large Cycle Wave 4 triangle consolidation rather than an immediate collapse or straight‑line melt‑up.
A contracting triangle outline is shown on the right side of the chart, treating the first sharp decline from the peak as Wave A and the current overlapping recovery as Wave B, with the market expected to rotate through A–B–C–D–E before launching Cycle Wave 5 higher.
Key levels and scenarios
- Preferred scenario: BTCUSD Elliott Wave analysis favours Cycle Wave 4 developing as a broad triangle while price holds the 0.382 retracement of the prior advance and the lower boundary of the long‑term channel. Above that cluster, the triangle remains preferred over a full trend reversal.
- Bullish outcome: Once Wave E of 4 completes, Elliott Wave guidelines project a strong Cycle Wave 5 thrust, with upside targets from the 1.618 and 2.618 extensions of earlier impulses, pointing to significantly higher prices than today.
- Risk to the roadmap: A decisive monthly close well below channel support and the 0.382 retracement would argue for a deeper flat or more bearish structure, while a straight impulsive break through the proposed B‑wave highs without sideways compression would imply the advance is still part of an ongoing Cycle Wave 3, not a triangle.