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. A bullish turn towards $1900 mark remains high probability from here.
Also note that Gold might be finding support close to the fibonacci 0.618 retracement of the entire rally between $1721 and $1877 levels. Immediate resistance is seen around $1810 and a break higher will confirm bulls are back in control.
Gold had rallied between $1677 and $1834 levels, subdividing into five waves, carving an impulse Wave (a) on the chart. The subsequent drop was corrective a-b-c, marked as Wave (b) at $1721. The metal has either completed Wave (c) at $1877 or progressing toward $1900 to terminate.
A critical support is seen at $1758 and till the time bulls are able to hold higher, the structure remains bullish for Gold. If the above is correct, bulls will be inclined to push prices toward $1900-30 zone, going forward.
Traders might be looking forward to initiate fresh long positions now ($1780), with risk below $1758. Watch out for a break above $1810 to confirm a bullish reversal.
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.