Gold continued its decline yesterday and print fresh lows around $1676 mark before finding support. The yellow metal is trading around $1690 levels for now and is expected to push through $1753 mark at least, in the next 1-2 trading sessions.
Looking at the medium-term wave structure, Gold has been dropping since $1965 as seen on the 4H chart presented. The wave counts suggest a larger degree Wave 1, 2 and 3 might be in place around $1802, $1876 and $1676 lows registered yesterday respectively.
Immediate resistance is seen around $1816/17, followed by $1876 and higher, while support remains intact at yesterday’s low for now ($1676). Short-term resistance has seen around $1713/15 mark and a break there would be encouraging for further bullish setup.
Please note that Fibonacci 0.382 retracement of Wave 3 is seen around $1753 levels as seen on the chart. High probability remains that Wave 4 might terminate close to $1753/60 levels, going forward. A break above the trend line resistance will be considered encouraging for bulls to continue further.
The overall trend remains bearish and Gold might face strong resistance around the $1750/60 one. A few strong convergences as Fibonacci and the trend line are seen to be passing through. If the above unfolds accordingly, the next potential bearish target is towards $1550 mark.
Gold remains a good candidate to be sold on rallies through $1750/60 zone. Only a consistent break above the trend line and subsequently towards $1820 and $1876 will change the bearish structure. It is safe to look for resistance to sell at the moment.
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.