Gold has managed to push higher towards $1840/45 resistance zone as expected. Bulls remained poised to rally from $1785 lows over the last week and reached $1841 early hours of trade today. The rally might be exhausted and could face resistance here.
Gold has reached the fibonacci 0.618 retracement of the latest decline between $1876 and $1785 boundary over the last week. Bears might be poised to regain control from here hence watch out for a bearish signal around current price to trigger a selloff.
Furthermore, the metal is also facing resistance of the dropping trend line since $1960 highs as seen on the 4H timeframe. It is not yet mandatory that Gold would reverse lower from here but probabilities remain high.
Looking at the wave structure since $1960 highs, Gold had carved an impulse wave through $1802 levels sub dividing into 5 waves labelled as Wave 1. Also note that the subsequent rally towards $1876 was corrective and hence potential Wave 2 on the chart.
If the above structure holds well, Gold is well into its Wave 3 lower towards $1650 and further. For this count to hold well, prices should stay below $1876 going further. The metal might face resistance at this time around $1840/45 zone and a bearish signal could confirm.
Alternately, Gold might continue to rally towards $1900/10 mark, to terminate Wave 2 as an expanded flat corrective wave, before finding resistance again. Either way, the metal remain vulnerable for a bearish reversal until $1960 is intact.
Finacademy Technical Team
Silver has raised through $27.55 levels this morning, alongside most risk assets. The metal has approached a strong resistance zone now and bears might be inclined to take control back soon. Also note that it has almost reached the fibonacci 0.618 retracement of the entire drop between $30.13 and $23.80 levels respectively.
USDJPY bulls are now looking poised to push through 112.00/50 mark, after have carved yet another higher low around 107.50. Please note it bounced off the trend line support since January 2021 lows as well. Looking higher from here for next few weeks.
Gold had raised through $1799 yesterday before reversing sharply towards $1770 before finding support again. The yellow metal is pulling back at the moment and seems to have carved a meaningful top already yesterday. If correct, $1786 might offer strong support.