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
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.