Gold is facing interim resistance around $1785-90 zone and might be preparing to reverse lower toward $1750-55 zone. It is expected to find support there since $1750-51 is also fibonacci 0.618 retracement of the rally between $1721 and $1800 levels respectively.
Gold had earlier rallied between $1677 and $1834 as an impulse wave. As expected, the subsequent drop through $1721 proved to be corrective. If the above proposed count holds well, the yellow metal could push above $1835 in the next wave.
The entire structure might be unfolding into a zigzag (a)-(b)-(c), as labelled on the chart here. A lower degree wave I seems to be in place around $1800 mark. Bears are looking poised to drop through $1750-51 to terminate potential wave ii there.
We can expect a wave iii of (c) rally to unfold thereafter, pushing through $1835 resistance and up to $1865 levels in the next several weeks. Intermediate support comes in around $1721, while resistance is at $1800, followed by $1835 levels respectively.
Traders might remain inclined to initiate fresh long positions around $1750-60 zone, with risk below $1720 and potential target toward $1835 at least.
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.