Gold has managed to stage an impressive rally post FOMC on Wednesday July 28, 2021 towards $1832 levels. The yellow metal might take a pause from here and retrace towards $1820 at least before resuming its rally towards $1850 levels, going forward.
Gold had earlier dropped from $1916 levels through $1751 sub dividing into 5 waves, marking an impulse wave. Ideally, an impulse wave is followed by a correction on the opposite side. Gold might be producing a corrective wave A-B-C towards $1850 levels for now.
Also note that Gold has managed to carve Waves A and potential B around $1834 and $1789 levels respectively. If the above is correct, Wave C higher has already resumed since $1789 lows and bulls are looking poised to push through $1850 at least.
Alternately, a drop below $1789 from here would confirm that a lower top has been carved around $1834 levels and that Gold might continue drifting lower towards $1650 levels in the next several weeks.
Traders might want to remain flat for now and wait for a potential corrective drop towards $1820 levels at least. Bulls might be poised to resume rally from there and push through $1834 highs.
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.