Gold wave structure continues to paint a bearish picture as bears remain poised to drag prices lower towards $1650 and $1550 levels in the next few weeks. The yellow metal has been dropping since $2075 highs print in August 2020 and could be into its final drop before retracing higher.
The metal might be carving a larger degree A-B-C since $2075, where Wave A potentially terminated around $1760, Wave B rallied through $1960 levels and Wave C might be in progress, looking poised to terminate lower towards $1650 and $1550 levels.
Immediate resistance is seen at $1820, followed by $1876 and $1960; while interim support comes in around $1676 levels respectively. A break below $1676 will accelerate further towards $1650 and beyond, before finding support again.
Looking at the structure since $1960 highs, Gold has managed to carve Waves 1, 2, 3 and potential Wave 4 around $1800, $1876, $1676 and $1756 levels respectively. Also note that Wave 4 might terminate a bit higher towards $1770/75 mark as well.
Also note that Gold has bounced off the resistance trend line accompanied by fibonacci 0.382 retracement of Wave 3 around $1756 levels. Since then, it has remained sideways but a drop below $1719 will accelerate downside further toward $1650 and $1550 levels respectively.
Gold continues to remain a good candidate to be sold on rallies through $1745/50 and $1770/75 respectively. A turn from here would unfold Wave 5 lower towards at least $1650 before finding support again.
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.