Gold prices have bounced back from intraday lows around $1772 mark on Tuesday. The yellow metal is trading close to $1790 at the time of writing and might challenge $1810-15 zone in the near term. Bulls are now looking poised to hold prices above $1762 level.
Further note that Gold has bounced higher from its trend line support since $1677 low. Gold prices are back into the buy zone of its support trend line and looking to resume its rally. Immediate price resistance is seen through $1810-15 zone, which could be the next short-term target.
Gold had earlier rallied between $1677 and $1834 levels sub-dividing into five waves, carving an impulse. The termination around $1834 is marked as Wave (a) within the (a)-(b), (c) corrective wave. Going further, the drop between $1834 and $1721 was a corrective zigzag labelled as Wave (b).
Since then, Wave (c) might be unfolding as an ending diagonal which has already completed waves I, ii, iii and iv around $1813, $1758, $1877 and $1761 levels respectively. If the above proposed structure holds well, Gold might be soon underway towards $1900 mark as wave v unfolds.
Traders might be inclined to initiate fresh long positions around $1775-80 zone. Risk remains around $1758 while potential target points $1900-30 mark.
Finacademy Technical Team
Gold prices dropped through $1773 lows on Thursday before finding support again. The drop from $1793 was in-line with price action of a gartley.
The US dollar index might have carved a lower high around 96.50 mark on Tuesday. The index dropped through 95.80 levels on Wednesday before finding some support.
USDJPY is soon approaching a formidable resistance zone around the 114.40-50 mark. The currency pair has been carving a corrective rally since 112.50 lows.