XAUUSD H4 Analysis: Wave 4 Pullback Sets the Stage for Wave 5

Introduction

Gold (XAUUSD) continues to maintain a bullish Elliott Wave structure on the H4 timeframe. The chart indicates that Wave (3) may have been completed, while price is now potentially developing a corrective Wave (4).

The current structure suggests that a pullback could take place before Gold resumes its larger bullish trend in Wave (5).

Technical Analysis

The Elliott Wave structure shows a clear five-wave advance from the previous Wave (2) low, with Wave (3) reaching the recent high around the 4,450 area.

Following the completion of Wave (3), price has started forming a corrective structure labelled Wave (4). The projected correction consists of an ABC pattern, with Wave (a) and Wave (b) already developing.

The current price action suggests that Wave (b) may be approaching completion. If confirmed, Gold could begin Wave (c) to complete the Wave (4) correction.

The first potential pullback zone is around 4,280–4,320, while the deeper Fibonacci support zone is around 4,235–4,270.

The 4,235–4,270 area is particularly important because it could provide the support required for the completion of Wave (4).

Awesome Oscillator Confirmation

The Awesome Oscillator is also showing a decline in bullish momentum following the strong acceleration during Wave (3).

This weakening momentum supports the possibility of a corrective pullback rather than an immediate continuation higher.

However, the broader structure remains bullish as long as the important Wave (4) support zones hold.

Wave (5) Projection

Once Wave (4) is completed, the preferred scenario is for Gold to resume its bullish movement and develop Wave (5).

The initial upside objective is around 4,450–4,500, with the possibility of a move toward new highs if bullish momentum strengthens.

Therefore, traders should monitor the projected Wave (4) support zones for bullish reversal signals before considering the next potential Wave (5) advance.

Conclusion

The current XAUUSD H4 structure suggests that Gold may still have a Wave (4) correction to complete before the next major bullish move.

The key scenario is:

Wave (3) completed → Wave (4) ABC correction → Support zone → Wave (5) bullish continuation.

The 4,235–4,320 area remains the key zone to monitor for the potential completion of Wave (4).

If support holds and bullish momentum returns, Gold could resume its larger uptrend toward new highs.

However, a decisive break below the major Wave (4) support structure would invalidate or require a reassessment of the current Elliott Wave count.