Gold might have carved a meaningful top around $1916 levels on June 01, 2021. Since then, the yellow metal has managed to carve a series of lower lows and lower highs hitting $1750 mark yesterday. If the trend has turned lower, Gold shall remain below $1916, going forward.
Looking at the wave counts, it seems that Gold has carved Waves 1 and 2 around $1856 and $1903 levels respectively. Since then, Wave 3 seems to be unfolding and lower degree waves I, ii and iii might have already terminated.
Furthermore, Gold might have also terminated lower degree wave iv around $1798 levels recently. Alternately, wave iv might be still unfolding as an expanded flat and could reach up to $1800/05 levels before terminating.
If the above proposed structure holds well, Gold might be soon terminating Wave 3 around $1700/10 levels, going forward. Also, the yellow metal could reach $1650 mark by the time the impulse wave is complete. (5 waves down from $1916.)
Gold bears might be already preparing to take out the next support around $1720, followed by $1678 in the near future. Traders might want to continue selling on rallies until prices stay below $1900 levels, 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.