Gold had dropped to $1728 mark on Tuesday before finding support. The yellow metal still remains within fibonacci 0.618 retracement of Wave (a), the rally between $1677 and $1834. Bulls might be poised to come back in control soon.
A break above $1753-54 will confirm that a meaningful bottom is on place and that bulls would push higher through $1865 mark in the coming weeks. Ideally prices should stay above $1710 mark, if the above bullish structure needs to remain intact.
Earlier, Gold had dropped between $1916 and $1677 levels subdividing into five waves. If correct, a three wave corrective rally seems to be underway from $1677 lows. Within the correction, the yellow metal might have terminated Waves (a) and potential (b) around $1843 and $1728 levels respectively.
Gold bulls might be now poised to push higher above $1834 at least, as Wave (c) unfolds. We can expect prices to test $1865 mark, which is the fibonacci 0.786 retracement of the drop between $1916 and $1677 levels respectively.
Alternatively, Gold prices might push higher towards $1916-20 before terminating the above corrective rally. Traders might want to position themselves on the long side against $1710 mark, towards $1865 going forward.
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.