Gold might have carved a potential support around $1805 levels as bulls are looking poised to extend rally towards $1858 in the coming weeks. Gold needs to ideally stay above $1789 levels to keep the above bullish structure intact for now.
Gold had dropped from $1916 through $1751 sub dividing into 5 waves labelled I through v on the chart here. Further, the termination around $1751 could be larger degree Wave A within the A-B-C decline expected toward $1650 levels, going forward.
Since $1751 lows, Gold might be carving a corrective Wave B, which might extend its reach towards $1858 before terminating. Also note that $1858 is fibonacci 0.618 retracement of the earlier drop between $1916 and $1751.
Furthermore, Gold seems to have carved lower degree waves a and b around $1834 and $1789 levels respectively. If the above is correct, bulls might be inclined to produce wave c rally towards $1858 high to terminate the corrective rally and larger degree Wave B.
Gold is most likely to find strong resistance around $1858 before resuming lower again. Most traders might position on the long side for now with potential risk just below $1789 levels.
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.