Gold might be underway towards $1865 in the next few weeks as it completes its first impulse wave between $1721 and $1770 early this week. The lower degree wave I might be complete around $1770 or could push through $1775 to terminate.
Gold price might retrace lower towards $1740-45 zone in the near term (intraday) as potential lower degree wave ii termination. Bulls are expected to be back in control thereafter to push higher towards $1865 as waves iii, iv and v unfold to terminate Wave (c).
Gold is most likely to produce a corrective rally (a)-(b)-(c), which had begun since $1677 lows earlier. Please also note that waves (a) and (b) are in place around $1843 and $1721 levels respectively. If the above is correct, wave (c) is underway against $1721.
Also note that wave (b) had dropped to fibonacci 0.618 retracement of wave (b), a common relationship according to the Elliott Wave Principle. Overall, bulls are expected to remain in control till $1721 stays intact.
Traders might want to initiate fresh long positions around $1740-45 zone with risk just below $1721 and potential target above $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.