Gold might face some resistance around current price action $1790/95 levels and drop towards $1750 mark before resuming higher again. Bulls might be targeting $1820/25 at least before resuming lower again. The counter trend rally might hit fibonacci 0.68 retracement before terminating.
Gold has dropped from $1916 highs through $1677 lows, clearly sub dividing into 5 waves, marked as Wave A on the 4H chart here. High probability remains for a Wave B rally towards $1825 zone, which is also the fibonacci 0.618 retracement of the above drop.
The rally has managed to reach fibonacci 0.50% around $1795 yesterday and could push higher from here, or after producing a corrective decline. It would be safer trading strategy to prepare selling around higher levels.
Alternately, Gold might have completed an A-B-C wave structure between $1916 and $1677 levels. If correct, the entire drop might be retraced and prices could soar higher towards $1920 and above in the coming weeks.
Either way, it is a safe trading strategy to buy on dips towards $1750 levels or sell on rallies through $1830 going forward. A break above the trend line resistance would be considered bullish for Gold.
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.