Gold has managed to rally over the entire week after having carved lows around $1678 last week. The yellow metal has touched $1758 yesterday before pulling back. Immediate price support is seen around $1735 mark and a break below that could accelerate further.
Gold wave structure is indicating that it might have completed a flat Wave 4 around $1758 levels. As labeled on the 4H chart here, the yellow metal might have terminated Waves 1, 2, 3 and potential 4 around $1802, $1876, $1676 and $1758 levels respectively.
If the above proposed structure holds well, Gold might be resuming lower from here towards $1650 and $1550 respectively. Also note that bulls have managed to hit Fibonacci 0.382 retracement of Wave 3, which is a general guideline for terminating Wave 4.
Alternately, Gold might be preparing to push towards $1770/80 levels, before finding resistance again. In that case Wave, 4 might be extending its last leg higher before terminating and reversing lower again.
Either way, Gold bears might remain poised to reverse lower from either current price $1750/55 or from $770/80 levels respectively. Major resistance is seen towards $1876 levels and only a break higher might turn the structure to bullish.
Traders might be preparing to initiate fresh short positions around current levels and targeting lower towards $1650 and $1550 levels respectively. Watch out for a short term support around $1700 mark 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.