Gold is drifting sideways at the time of writing and a potential drop toward $1830 remains possible before the next leg resumes higher. Please note that fibonacci 0.382 retracement of lower degree wave iii is also passing through $1832, which could be potential support.
Gold remains in control of bulls as they target around $1890 and $1930 going forward. Also note the Elliott Channel resistance trend line passing through the same zone. A test of the channel resistance and $1900 mark might indicate termination of the corrective rally.
Gold has been rallying in a larger degree corrective wave since $1677 lows. The yellow metal is possibly working to complete Wave 2 of the ending diagonal structure, which began from $2075 in August 2020. Once complete, the metal should turn lower below $1676 as Wave 3 unfolds.
The rally between $1677 and $1834 was in five waves, carving an impulse Wave (a) on the chart. Subsequently, the decline toward $1721 was corrective a-b-c, marked as Wave (b). The metal is unfolding Wave (c) since then, potentially targeting $1900-30 zone.
Traders remain inclined to hold long positions initiated earlier and also add more around $1830 mark going forward. Risk remains below $1800 while potential target is towards $1900-30 alongside the channel resistance.
The Profinacademy.com Team
Bitcoin dropped close to $46000 mark on Monday before finding support again. The crypto is seen to be trading around $46500 mark at the time of writing as bulls remain inclined to be back in control.
The US dollar index spiked through 96.85 mark on Wednesday on the back of the Federal Reserve interest rate decision.
EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon.