Gold seems to have completed a 5 wave decline from $1916 high registered on June 01, 2021 through $1677 lows over the last week. The yellow metal has pulled back through $1756 levels since then and might be looking to extend its counter trend rally towards $1820/25 levels.
Gold had extended its lower degree wave v drop through $1677 early this week before bulls managed to pull back strongly. It is expected to face some initial resistance around $1869 levels, which is fibonacci 0.382 retracement of the above drop.
Looking at the larger degree wave structure, Gold might have completed Wave A lower around $1677 and might be underway to carve Wave B towards $820/25 levels. Also note that fibonacci 0.618 retracement of Wave A is seen passing through $1820/25 zone.
If bulls manage to push higher towards $1820/25 levels, probability remains for a bearish reversal ahead and bears might be back in control. The next bearish target is expected towards $1430/40 levels, in the next several weeks.
Traders might be preparing to remain long in the short term expecting a push higher towards $1820/25 before turning lower again.
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.