Gold had raised through $1799 yesterday before reversing sharply towards $1770 before finding support again. The yellow metal is pulling back at the moment and seems to have carved a meaningful top already yesterday. If correct, $1786 might offer strong support.
Gold wave structure indicates that it has now terminated potential Wave 4 and is preparing to reverse lower towards $1625 as Wave 5 unfolds. Also note that the yellow metal has tested fibonacci 0.618 retracement of Wave 3 as labelled on the chart here.
Earlier, Gold had carved Waves 1, 2 and 3 around $1802, $1875 and $1676 levels respectively. Since then, a corrective flat pattern seems to have unfolded, labelled as Wave A-B-C. The pattern looks complete at $1799 or might test $1800 handle.
If the above structure is correct, Gold might turn lower from here and continue to remain under the control of bears through $1625 levels. Immediate price support is seen just below $1760 and a break lower would accelerate the drop.
Alternately, if bulls manage to push through $1799 highs, Gold might test $1807/10 levels before finding resistance again. Either way, a bearish reversal seems to be imminent from current levels or from $1807 levels respectively.
Only a sustained break above $1875 would change the above bearish structure. Watch out for intraday resistance today around $1785/86 levels and a potential bearish reversal from there.
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.