Gold had rallied through $1810 levels in-line with expectation. The yellow metal seems to be correcting lower at the moment and support is seen around $1790 zone. Bulls are expected to be back in control and resume rally towards $1830, near term.
Looking into the wave structure, Gold had dropped from $1916 highs through $1677, clearly sub dividing into 5 waves, marking an impulse drop. Ideally, an impulse would be followed by a corrective wave in the opposite direction.
The rally from $1677 low, seem to be unfolding towards $1825/30 and would complete 3 waves, correction as well. If the above is correct, Gold might see yet another push from current levels to reach $1825/30 mark.
Also note that fibonacci 0.618 retracement is seen towards $1825/30 zone as well, which could provide enough resistance of a bearish bounce. Furthermore, the resistance trend line since $1916 is also passing through the $1825/30 zone.
A bearish bounce there would warrant a resumption lower and drag below $1677 levels going forward. Alternately, a consistent push above trend line resistance and $1830 would confirm further upside potential in Gold. Traders might prepare to remain long in the near term.
Finacademy Technical Team
USDJPY could be progressing into a counter trend rally toward 114.30-50 zone in the next few trading sessions.
Gold dropped to $1770 mark on Tuesday before finding some support. The yellow metal is still testing its intermediate trend line support connecting $1721 and $1758 levels respectively.
The US dollar index carves a meaningful top around 96.88 mark over the last week. The index reversed sharply on Friday confirming a bearish Evening Star candlestick pattern on the daily chart.