Gold is preparing to pull back towards $1814-15 mark, before reversing lower again. The yellow metal has dropped between $1834 and $1782 early this week and is looking for a partial retracement, to carve a lower degree wave b, before reversing lower again.
Gold had earlier dropped between $1916 and $1677 subdividing into 5 waves, carving an impulse. Ideally, an impulse is followed by a corrective wave in the opposite direction. The rally between $1677 and $1834 could be first wave of the corrective phase.
It has been marked as Wave A on the chart here around $1834 termination. If correct, the yellow metal is now carving potential Wave B towards $1750-60 levels going forward. Within the corrective Wave B, the metal is further producing a lower degree a-b-c wave structure.
Looking into the lower degree wave structure, the yellow metal has already terminated wave at around $1782 early this week. It is now looking to be underway to terminate wave b towards $1814-15, which is the fibonacci 0.618 retracement level of the above drop.
Traders might be preparing to initiate fresh short positions around $1814-15 mark, against $1834 and potential lower targets toward, $1750-60.
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.